The European Commission announced today that it had opened an in-depth investigation of plans by IBM to buy Swedish business software company Telelogic AB for about 5.2 billion crowns ($798.6 million). The proposed transaction raises competition concerns "
given the strong market position that IBM would achieve for certain types of software development tools, in particular so-called 'software modelling and requirements management' tools", the EU executive said in a statement.
The Commission now has 90 working days, until Feb. 20, to decide whether the takeover would significantly impede effective competition. The decision to open an in*depth inquiry does not prejudge the final result of the investigation, it said. "
After this transaction IBM would become by far the largest vendor of software development tools for software modelling and for requirements management," said Competition Commissioner Neelie Kroes in the statement. "
It is the Commission's duty to thoroughly analyse the effects of such a transaction and to ensure that it would not harm competition in the software development tools sector."
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