European Commission clears Microsoft-LinkedIn merger and dismisses data concerns

European Commission clears Microsoft-LinkedIn merger and dismisses data concerns

The European Commission has given its conditional approval to Microsoft’s acquisition of LinkedIn at Phase I. It has largely rejected big data competition concerns raised by competitor, Salesforce.

The Commission’s clearance is subject to commitments by Microsoft not to compel computer manufacturers that use the Microsoft operating system to pre-install a LinkedIn application. Microsoft also commits to allow consumers to remove such an application if computer manufacturers install it and to continue offering LinkedIn’s competitors the option to purchase interoperability functions with Microsoft Office on a non-discriminatory basis.

LinkedIn’s main competitors in the EU include Viadeo, XING and GoldenLine which are professional networking sites in, respectively, France, Germany and Poland.

LinkedIn currently does not have an add-in for Microsoft’s Windows 10.

The Commission dismissed concerns that the combination would distort competition in online advertising and in the market for customer relationship management.  The Commission considered whether Microsoft would be in a position to foreclose competitors by refusing them access to LinkedIn’s user database but concluded that this was not essential to compete on the market. In this market, the main competitors are Salesforce, Oracle and SAP.

The Commission has shown that it will not necessarily rush to a negative conclusion where a company that has market power acquires another business, if it is satisfied that the transaction does not harm competition.

Commission press release: Microsoft / LinkedIn (COMP/M M.8124) Commission press release IP/16/4284