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November 9, 2009 3:13 PM PST

EC formally objects to Oracle buying Sun

by Stephen Shankland
  • 28 comments

The European Commission on Monday formally dug in its heels over Oracle's planned acquisition of Sun Microsystems, but Oracle accused the regulatory body of "profound misunderstanding" in a rebuttal that declared its intention to fight the opinion.

The regulatory body issued a statement of objections about the merger, according to a Securities and Exchange Commission filing from Sun Microsystems. The open-source MySQL database software is the sole issue of concern in the matter, Sun said in the filing.

"The Statement of Objections sets out the Commission's preliminary assessment regarding, and is limited to, the combination of Sun's open source MySQL database product with Oracle's enterprise database products and its potential negative effects on competition in the market for database products," Sun said in the filing.

Oracle, though, fired back immediately, saying the objection "reveals a profound misunderstanding of both database competition and open-source dynamics." And indicating that other technologies are in limbo during the European deliberations, Oracle said, "Oracle's acquisition of Sun is essential for competition in the high-end server market, for revitalizing Sparc, and Solaris and for strengthening the Java development platform."

Meanwhile, the U.S. Justice Department reiterated its stance that the acquisition isn't anticompetitive. But given the gulf between Oracle and EC perspectives and Oracle's unwillingness to spin the MySQL software group off, it appears the matter won't be resolved soon.

MySQL is open-source software, meaning anyone may see, modify, and distribute the human-readable source code that underlies the software package computers actually run. Oracle's core database product is proprietary, meaning they don't grant those freedoms. MySQL is used widely at Facebook and Google among other companies, and competes to some extent with Oracle's existing products, arguably indirectly by expanding into newer markets to which Oracle's software isn't as well-suited.

Oracle castigated the commission in its statement:

It is well understood by those knowledgeable about open source software that because MySQL is open source, it cannot be controlled by anyone. That is the whole point of open source.

The database market is intensely competitive with at least eight strong players, including IBM, Microsoft, Sybase and three distinct open-source vendors. Oracle and MySQL are very different database products. There is no basis in European law for objecting to a merger of two among eight firms selling differentiated products. Mergers like this occur regularly and have not been prohibited by United States or European regulators in decades...

Sun's customers universally support this merger and do not benefit from the continued uncertainty and delay. Oracle plans to vigorously oppose the Commission's Statement of Objections as the evidence against the Commission's position is overwhelming. Given the lack of any credible theory or evidence of competitive harm, we are confident we will ultimately obtain unconditional clearance of the transaction.

The Justice Department, which is in Oracle's camp, detailed its reasoning in a statement from Deputy Assistant Attorney General Molly Boast of the Justice Department's Antitrust Division.

And though Boast pointed to the department's "strong and positive relationship on competition policy matters" with the EC, she also said, "At this point in its process, it appears that the EC holds a different view. We remain hopeful that the parties and the EC will reach a speedy resolution that benefits consumers in the commission's jurisdiction."

The Justice Department reasoned that there are other database packages available and that open-source projects can be forked by those who disagree with corporate sponsors' handling of the software.

"Several factors led the (Justice Department's antitrust) division to conclude that the proposed transaction is unlikely to be anticompetitive. There are many open-source and proprietary database competitors. The division concluded, based on the specific facts at issue in the transaction, that consumer harm is unlikely because customers would continue to have choices from a variety of well established and widely accepted database products," Boast said. "The department also concluded that there is a large community of developers and users of Sun's open source database with significant expertise in maintaining and improving the software, and who could support a derivative version of it."

Originally posted at Deep Tech
November 5, 2009 8:28 AM PST

Europe getting 'Internet freedom' law

by David Meyer
  • 8 comments

Europe is set to get a major overhaul of its telecommunications regulation, after the European Parliament and Council of Telecoms Ministers reached a compromise on the rights of Internet users.

The Telecoms Reform Package is a raft of new laws that tackle issues ranging from data-breach notification to faster number porting. Following an agreement reached on Wednesday night, the package will now become part of national legislation in every EU country, with a deadline of May 2011.

A sticking point in the package's progress had been a provision regarding "three strikes" laws targeting Internet users suspected of unlawful file-sharing of copyrighted material. But negotiations led to an "Internet freedom provision," which states that any measures taken by member states to limit Internet access or use must "respect the fundamental rights and freedoms of natural persons, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and general principles of Community law."

Read more of "European 'internet freedom' law agreed at ZDNet UK.

Originally posted at Wireless
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November 3, 2009 2:34 PM PST

Report: Oracle not yielding to EU with Sun buy

by Stephen Shankland
  • 26 comments

Oracle is taking a hard line in dealing with European Union objections to its planned acquisition of Sun Microsystems, according to a Financial Times report Tuesday.

EU antitrust regulators are concerned that Oracle, which has a large business in proprietary software, won't be a good home for Sun's open-source MySQL database business. According to the report, Oracle is unyielding, offering no concessions to deal with the EU's concerns.

That stance could lead the regulators to issue a formal complaint objecting to the deal, and that move could occur within days, according unnamed sources in the story. Neither the EU or Oracle commented for the story.

MySQL's former chief executive, Marten Mickos, has urged the EU to approve the acquisition, but cofounder Monty Widenius has objected. Sun shareholders and the U.S. Justice Department have approved the deal.

Originally posted at Deep Tech
October 23, 2009 12:07 PM PDT

Obama: U.S. needs to lead clean-energy race

by Martin LaMonica
  • 28 comments

CAMBRIDGE, Mass.--President Barack Obama on Friday called on the U.S. Congress to pass energy-and-climate legislation, a move he said would stimulate technology innovation and improve the economic competitiveness of the United States.

Obama delivered a speech at the Massachusetts Institute of Technology here after touring student laboratories and before attending a fund-raiser for Massachusetts Gov. Deval Patrick.

President Obama speaking on clean energy at MIT on Friday.

(Credit: Martin LaMonica/CNET)

A "comprehensive" energy-and-climate bill will address both environmental and economic problems, Obama said. Countries around the world recognize that energy supplies are limited while demand is rising. That situation is giving rise to a "peaceful competition" among countries to develop clean-energy technologies that "will propel the 21st century."

"There are going to be all sorts of debate both in (the) laboratory and on Capital Hill, but there is no question that we have to do these things," he said. "The nation that wins that competition will be the nation to lead the global economy. I'm convinced of that, and I want America to be that nation."

Obama urged Congress to pass an energy-and-climate bill the Senate is now considering, the Clean Energy Jobs and American Power Act. He specifically praised the bill co-sponsor Democratic Massachusetts Sen. John Kerry, who was present at the talk, and Republican South Carolina Sen. Lindsay Graham. The senators co-wrote an editorial in the New York Times earlier this month outlining the main components of a desired bill, which was seen as a key step toward passage.

The House bill, which narrowly passed in May, includes a national mandate for utilities to use renewable energy and a cap-and-trade system in which large polluters can buy and sell permits for carbon dioxide emissions.

The president did not weigh into the details of the existing bills, but he did outline the contours of an energy policy that reduces the country's reliance on fossil fuels while making better use of natural resources.

The ingredients of energy policy should include clean use of coal, oil, and natural gas; "safe nuclear power;" sustainably grown biofuels; and energy from wind, solar, and wave power, Obama said.

"It is a transformation that will be made as swiftly and carefully as possible, to ensure we are doing everything we can to grow this economy in the short, medium, and long term. And I do believe that a consensus is growing to achieve exactly that," he said.

Obama said the Pentagon and energy security hawks are stepping up efforts to reduce oil imports while businesses and environmentalists are working together. Young people, too, view energy-and-climate as the challenge of their generation, he added.

"We are seeing a convergence. The naysayers, the folks (who) would pretend this is not an issue--they are being marginalized," Obama said.

He said key pieces of the Senate bill have been approved in various committees but he warned that opposition to passing an energy-and-climate bill will increase as passage gets closer.

There were about 700 people at the MIT talk, including a number of local green-technology entrepreneurs, investors, and students at the university, which has become a hotbed for energy science and technology research.

Originally posted at Green Tech
June 22, 2009 5:40 AM PDT

Report: FTC to go after blogger freebies

by Caroline McCarthy
  • 44 comments

The Federal Trade Commission is planning to crack down on bloggers who review or promote products while earning freebies or payments, the Associated Press reported Sunday.

This would, for the first time, bring bloggers under FTC guidelines that ban deceptive or unfair business practices.

"New guidelines, expected to be approved late this summer with possible modifications, would clarify that the agency can go after bloggers--as well as the companies that compensate them--for any false claims or failure to disclose conflicts of interest," the article explained.

The rules could be quite strict, even extending to the practice of affiliate links--for example, a music blogger who links to a song on Amazon MP3 or iTunes that earns an affiliate commission in the process.

The practice of free products for bloggers, most of whom are not bound by ethical guidelines that journalists have historically followed, has been making headlines for some time now. Microsoft, for example, created a wave of bad press a few years ago when it gave free Acer laptops preloaded with Windows Vista to several dozen bloggers.

Some companies have sprung up around the whole notion of blogger compensation and giveaways. The AP article mentions some of the marketing companies that have made a business out of offering bloggers incentives--free trips, products, gift certificates, or outright payments--for coverage. One of them, Izea, has been generating controversy in the tech press since it started PayPerPost.

Izea says that it requires bloggers to disclose what they've gotten paid for or what they've received for free. But with the proposed FTC guidelines, if a blogger fails to disclose a freebie or payment, both Izea and the blogger could be held responsible. The FTC could also take issue with the fact that for at least one promotion, Izea has said it avoided including bloggers who would be likely to give the company negative press.

Izea CEO Ted Murphy wrote in a blog post Monday that the company supports stricter FTC regulations for bloggers.

"The companies that should be worried about these changes are those that have no standards and no way to enforce disclosure," Murphy wrote. "We have invested millions of dollars creating systems that allow us to automate transactions and verify standardized disclosure."

But some bloggers, the AP article mentioned, are concerned that the FTC's efforts could go too far, possibly generating probes into posts that were written without any compensation, and possibly leading bloggers to post with more restraint. And some believe it would be better if bloggers created their own standards based on niche and industry.

Then there's this: does the FTC realize just how many small-time bloggers are out there? Championing business ethics is a worthy goal, but, um, good luck getting much done when there are hundreds of thousands of blogs out there and new ones popping up more or less daily. Ever heard of the expression "herding cats?"

This post was updated at 11:37 a.m. PT with comment from Izea.

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