The Microsoft Corporation (NASDAQ:MSFT) LinkedIn Corp (NYSE:LNKD) deal just came under fire from salesforce.com, inc. (NYSE:CRM) which has raised antitrust concerns over the acquisition.
— Dr. Anurag Bagaria (@anurag_bagaria) June 16, 2016
The Microsoft LinkedIn deal which was announced earlier this year might not take place if Salesforce’s claims are successful. Microsoft expects to receive antitrust approval from regulators in the next few weeks. This might not happen because Salesforce has requested EU regulators to carry out antitrust investigations on its rival, based on the $26 billion bid that Microsoft presented for the LinkedIn Acquisition.
Salesforce attacks the Microsoft LinkedIn deal after losing out on bid
The Microsoft LinkedIn deal is the latest target for Salesforce which lost the acquisition bid for LinkedIn to Microsoft. The move also highlights the existing and growing rivalry between the two firms. Salesforce claims that the acquisition deal will violate healthy competition and innovation.
— Michael Holt (@SalesforceMicky) July 3, 2016
“By gaining ownership of LinkedIn’s unique dataset of over 450 million professionals in more than 200 countries, Microsoft will be able to deny competitors access to that data, and in doing so obtain an unfair competitive advantage,” stated Burke Norton, the chief legal officer at Salesforce.
The acquisition hints data privacy and antitrust issues
Salesforce argues that the acquisition deal between Microsoft and LinkedIn is subject to antitrust and data privacy issues. It thus claims that these factors need to be cleverly examined by the competitors as well as data privacy authorities in the European Union and the United States.
“Salesforce may not be aware, but the deal has already been cleared to close in the United States, Canada, and Brazil,” pointed out Brad Smith, the president and chief legal officer at Microsoft.
Smith also stated that his company is committed to fostering price competition through the Microsoft LinkedIn deal, in the CRM market where Salesforce has been dominating.
Salesforce stock closed the recent trading session at $71.20, down by $0.42 or 0.59% compared to the stock price in the previous trading session.
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