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Oracle asks judge to dismiss DOJ's case

Oracle has asked a judge to dismiss the US government's lawsuit to block its proposed takeover of PeopleSoft, arguing the government did not prove the $7.7bn (£4.2bn) merger would be anticompetitive.

Oracle filed the motion to dismiss after the US Department of Justice (DOJ) finished presenting its case. Filing such a motion is standard procedure for defendants after the plaintiff rests its case.

In the motion, Oracle presented several reasons for the judge to throw out the lawsuit. The DOJ asserted that an Oracle-PeopleSoft merger would unacceptably reduce competition in the market for a type of "high function" enterprise applications used by large corporations, resulting in price increases.

Oracle argued that the DOJ failed to define a geographic market and product category and did not prove lack of competition and price discrimination against the interests of large and complex enterprises. Oracle also said the DOJ did not prove that a merger would result in price increases or create a software giant that would have a competitive effect.

The judge has yet to rule on Oracle's motion.

The closely followed case is in its third week and is scheduled to take one more week, with testimony presented by witnesses for Oracle. The witness list includes PeopleSoft chief executive officer Craig Conway and Oracle chief execitive Larry Ellison.

Joris Evers writes for IDG News Service


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