Microsoft

EU Approves Microsoft’s $7.5 billion acquisition of GitHub

Microsoft’s upcoming acquisition of GitHub has been approved by the EU, according to a press release on Wednesday. The European Commission had concluded that “effective competition in the relevant markets would continue and Microsoft would have no incentive to undermine the open nature of GitHub’s platform.”

Both Microsoft and GitHub supply tools for developing and releasing software, and in particular, provide access to platforms for software development.

However, the Commission concluded that the combination of Microsoft and GitHub’s activities on these markets would not raise competition concerns because the merged entity would continue to face significant competition from other players.

The Commission also assessed whether there would be a risk of weakened competition, for instance, if Microsoft were to leverage the popularity of GitHub’s software development platform to boost its own sales of DevOps tools and cloud services. However, the investigation concluded that “Microsoft would not have the market power to undermine the open nature of GitHub to the detriment of competing DevOps tools and cloud services.”

The Commission has cleared the case unconditionally following its phase I investigation enabling the acquisition to progress onto the next stage.