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Both Microsoft and GitHub provide tools that organizations and individuals use when developing and publishing software ("DevOps tools"). In particular, (i) both companies offer access to platforms for software development allowing developers to collaborate on the source code and (ii) both provide code editors (computer programs designed specifically for source code editing) and integrated development environments (applications including a code editor, as well as additional features such as smart code completion).
The Commission has found that the combination of Microsoft and GitHub activities in these markets would not raise competition concerns as the merged entity continue to face significant competition from other players in both markets.
The Commission also assessed the risk of weakened competition if Microsoft leveraged the popularity of GitHub's software development platform to increase its sales of DevOps tools and cloud services. In particular, the Commission examined whether Microsoft would have the capacity and motivation to further integrate its own DevOps Cloud tools and services with GitHub, while limiting integration with DevOps tools and third-party cloud services.
The market investigation confirmed that Microsoft would not have the market power to reduce the open nature of GitHub at the expense of competing DevOps cloud tools and services. Indeed, such behavior would reduce the value of GitHub for developers, willing and able to switch to other platforms.
Therefore, as a result of its Phase I investigation, the Commission concluded that the transaction would not pose any competition concerns in any of the affected markets and settled the case unconditionally.
Companies and products
Microsoft is a global technology company based in the United States, active in the design, development and supply of computer software, hardware peripherals and related services, cloud-based solutions, online advertising, recruiting and services. professional social networks.
GitHub is a US based company that provides DevOps tools, especially a popular software development platform.
Merger control rules and procedures
The transaction was notified to the Commission on 14 September 2018.
The Commission is required to assess mergers and acquisitions involving companies whose turnover exceeds certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would hinder significant competition in the EEA or a substantial part of it.
The vast majority of mergers do not raise competition concerns and are allowed after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether or not to approve an approval (Phase I) or to launch an in-depth investigation (Phase II).
Further information will be available on the competition website in the public register of cases of the Commission under number M.8994.
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