US Gov't Lobbied EU To Approve Oracle-Sun Merger
littlekorea writes "Cables leaked by Wikileaks have revealed that the U.S. Government actively pressured the EU Competition Commissioner to approve Oracle's acquisition of Sun Microsystems. The cable reveals that the U.S. went to great lengths to discover how the competition commissioner felt about the 'pro-competitive' nature of open source software and whether this would represent a threat to the US$7.4 billion deal."
Why should the EU decide this on their own? It's better that the Worlds Remaining Superpower (tm) be there to ensure they make the right decision. And it's Oracle. What could possibly go wrong?
Lobbying isn't that bad. USA officials had arrived to one conclusion, felt that the issue was very important to them and communicated that to EU officials. Regular co-operative communication between officials of two political bodies. If EU officials then arrived to a result which (considering all things, including any political capital gained or lost) was bad for us as EU citizens, then our own officials are to blame. Personally, I don't think that they did and there is nothing in TFA that implies otherwise.
In other words, the cables show that EU and USA officials of corresponding organizations actually communicate with each other when handling international issues. Nothing to see here.
Because they wish to do business in the EU, you know, the biggest economy in the world.
Europe's opinion matters because not being able to do business in such a large economy would make it pointless to procede with the takeover anyway as they'd have been better off not taking over Sun and keeping their EU business than taking over Sun and being ineligible to do business in the EU.
It's worth pointing out it's a two way street too. BAE, a British defence firm, bribed Saudi officials to get an aircraft deal, but despite them being a British company and the deal being with Saudi Arabia and hence having nothing to do with the US, the US still fined the company and BAE accepted and paid the fine because it'd rather continue to be able to do business in the US, with by far the largest military expenditure in the world, than not pay the fine and not be able to do business in the US.
This is the thing with an increasingly globalised world, companies are responsible for their actions wherever they do business, not just where they were founded or are headquartered- if you want to take European money, you need to play by European rules.
"What is the EU going to do if they merge in the US, prevent the new merged company from doing any business in the EU?"
DOH! Yes; Precisely that.
Isolationism does not just mean saying 'Fuck You' to your neighbors; It also means they shrug and say 'Fuck You Too' right back.
"Oops, I always forget the purpose of competition is to divide people into winners and losers." - Hobbes