ACCC concern over Oracle's proposed PeopleSoft acquisition

The Australian Competition and Consumer Commission (ACCC) has expressed concern over Oracle's proposed acquisition of PeopleSoft.

Graeme Samuel, ACCC chairman, said the concern was that that it may lead to a substantial lessening of competition, breaching the Trade Practices Act.

According to a statement, the ACCC has contacted a number of Australian organisations which use enterprise application software. "A significant number of these organisations have stated that the proposed acquisition will restrict their choices significantly and lower the level of competition, especially in relation to complex financial management software and human resource management software," he said.

"Given that the matter is likely to be considered by the US courts, the ACCC will not be taking action at this point," Samuel said in the statement. "The ACCC recognises that the proposed acquisition has wide-ranging international consequences."

Samuel said that the ACCC considered barriers to competing with Oracle and PeopleSoft were significant. "The software requirements of some organisations are very complex and it is not possible for the smaller software companies to meet these needs."