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EU set to support Microsoft’s LinkedIn deal

by on24 November 2016

Seems to be avoiding the antitrust missteps

Software giant Microsoft is likely to gain EU approval for its $26 billion buy of professional social notworking site LinkedIn after making concessions aimed at addressing competition concerns.

Vole last week told the European Commission that it would still allow LinkedIn's rivals access to its software such as its Outlook program and give hardware makers the option of installing competing professional social networks on computers after the acquisition.

This side-stepped the EU competition watchdog’s concerns about tying its products to block rivals, which have cost Microsoft more than 2.2 billion euros. The slight modifications came following feedback from rivals and customers.

The deal, which is Microsoft's largest ever acquisition, will allow the company to add a suite of sales, marketing and recruiting services to its core business products.

It will not make its rival Salesforce particularly happy. It lost out on the bidding for LinkedIn and it urged regulators to examine the antitrust and data privacy issues thoroughly before approving it.

Authorities in the United States, Canada, Brazil and South Africa have already nodded through the acquisition without demanding concessions. The bulk of LinkedIn's $3 billion annual revenue comes from job hunters and recruiters who pay a monthly fee to post resumes and connect with people.

Last modified on 24 November 2016
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