Kerry, Hatch Lead 59 Senators in Defending U.S. Business Abroad

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Send Letter to European Commission Requesting Action on Oracle-Sun Merger

November 24, 2009 -- WASHINGTON, D.C. – Today, Senators John Kerry (D-Mass.) and Orrin Hatch (R-Utah) led fifty-nine senators from both sides of the aisle in respectfully requesting that the European Commission (EC) complete its investigation of the Oracle-Sun merger clearance request as soon as possible.

The U.S. Department of Justice approved the plan in August, concluding the merger would not be anticompetitive.

“The deal between Oracle and Sun was announced in April and seven months have gone by without a resolution. Continued delay of the European Commission’s decision on clearance threatens thousands of American jobs, so we felt compelled to ask for a speedy resolution,” said Kerry. “The EC is within its sovereign rights to set the rules for operation in its market, but with our Department of Justice having made a compelling case that the merger does not pose a threat to competition, it is fair to ask the EC for the basis on which a delay on decision making is warranted and to make a decision one way or the other.”

“I have become increasingly concerned about the growing body of evidence that foreign regulatory agencies are unfairly using their review processes to impede the business of American corporations,” said Hatch. “This transaction has been thoroughly reviewed by the United States Department of Justice, which has decided to take no action. Therefore, I hope the EC will quickly conclude their investigation into this transaction.”

The full text of the letter is below:

Chargé d'Affaires Angelos Pangratis

Acting Head of Delegation

Delegation of the European Commission to the United States

2300 M Street, NW

Washington, DC 20037

Dear Chargé d'Affaires Pangratis:

As fellow government officials committed to the principle that competition is the cornerstone of healthy economic growth, we would like to take this opportunity to share our thoughts with you as to the proposed acquisition of Sun Microsystems, Inc. by Oracle Corporation. In addition, due to Sun Microsystems’ deteriorating financial condition and the possible negative effect on employment of the company’s workforce, we respectfully request the European Commission expedite the completion of its investigation into this transaction.

The United States Department of Justice, after an intensive investigation, closed its inquiry into this transaction without taking any action. In fact, the Justice Department did not find documentary evidence that this acquisition would harm competition. We recognize that the European Commission has a sovereign right to thoroughly investigate transactions where corporations utilize the European Union’s marketplace. Further, it is our understanding the Commission is concerned about competition in the database software market. However, we have been informed by Sun Microsystems that their subsidiary, which competes in this specific market, generates only €17 million in revenue and that the same market has competitors with capitalizations of tens of billions of Euros.

Unfortunately, Sun Microsystems’ financial position has become more precarious and the Commission’s inquiry has continued. Some have raised concerns over the company’s ability to continue to employ its thousands of workers. Accordingly, we respectfully request the European Commission complete its investigation of this transaction as quickly as possible.

Thank you for your attention to this matter.

Sincerely,

Senator John F. Kerry

Senator Orrin G. Hatch

Senator John Barrasso

Senator Mark Begich

Senator Michael F. Bennet

Senator Robert F. Bennett

Senator Christopher S. Bond

Senator Barbara Boxer

Senator Sherrod Brown

Senator Sam Brownback

Senator Jim Bunning

Senator Richard Burr

Senator Roland W. Burris

Senator Saxby Chambliss

Senator Tom Coburn

Senator Thad Cochran

Senator Susan M. Collins

Senator Mike Crapo

Senator Jim DeMint

Senator Christopher Dodd

Senator John Ensign

Senator Michael B. Enzi

Senator Dianne Feinstein

Senator Al Franken

Senator Kirsten E. Gillibrand

Senator Lindsey Graham

Senator Judd Gregg

Senator Kay R. Hagan

Senator Kay Bailey Hutchison

Senator James M. Inhofe

Senator Dan Inouye

Senator Johnny Isakson

Senator Edward E. Kaufman

Senator Paul G. Kirk, Jr.

Senator Amy Klobuchar

Senator Jon Kyl

Senator Mary L. Landrieu

Senator Frank R. Lautenberg

Senator George S. LeMieux

Senator Joe Lieberman

Senator Richard G. Lugar

Senator Robert Menendez

Senator Jeff Merkley

Senator Lisa Murkowski

Senator Ben Nelson

Senator Bill Nelson

Senator James E. Risch

Senator Pat Roberts

Senator Charles E. Schumer

Senator Jeanne Shaheen

Senator Olympia J. Snowe

Senator Debbie Stabenow

Senator John Thune

Senator Mark Udall

Senator David Vitter

Senator George V. Voinovich

Senator Jim Webb

Senator Roger F. Wicker

Senator Ron Wyden

Source: Senator John Kerry