• silicon.com
• Management
• CIO Insights

By Heather McLean, 28 May 2002 18:00

NEWS UK accountancy specialist Sage is calling on competition regulators across Europe to veto Microsoft's $1.3bn takeover of Navision. Sage is concerned that the software giant will crush smaller competitors which are chasing business in the European small and medium-sized enterprise (SME) market. Sage complained to the Danish monopoly regulator that Microsoft is likely to slash prices and then bundle Navision applications with its large suites, according to Danish newspaper Boersen. However, Nigel Montgomery, director of European research at AMR Research, said: "Sage is claiming that Microsoft will drop the price and flood the market with a cheap product, but that's what Sage did when it came into the market. It's called free market enterprise. "If anything this highlights Sage's nervousness at having some serious competition. There is no evidence that Microsoft will do anything other than compete in a fair market," Montgomery added. Andy Kellet, senior research analyst at Butler Group, agreed with Montgomery. "This sounds like an admission that Sage is scared," he said. The company intends to send the same documents to the European Union and also monopoly commissions in France, Germany and the UK. Kellet added: "I wouldn't have thought Microsoft will take any notice as it doesn't have a history of paying attention to regulators." Microsoft said in a statement: "We are disappointed that Sage has decided to intervene with the Danish competition authority to oppose our proposed acquisition. "Microsoft's investment in this space will help create new opportunity for software and IT services&.We are confident that the acquisition is in full compliance with EU law - including Denmark - and look forward to completing the deal as anticipated this summer." Sage is a Microsoft partner and the software giant is unhappy that the company went over its head with its concerns. Sage declined to comment.