Salesforce vs. Microsoft in Linkedin acquisition: Who prevails?

Salesforce vs. Microsoft issue is developing, as three months ago Salesforce lost the bidding war in LinkedIn acquisition. Which arguments are provided by Salesforce?

30 September, AtoZForex The software company from the US, Salesforce, intervened into the case of Microsoft’s $26 billion acquisition of the social network LinkedIn.

Salesforce vs. Microsoft in Linkedin acquisition

Specifically, Salesforce called on the EU regulators to further investigate the antitrust issues around the case, as the deal would harm the competition due to the possibility that Microsoft would possess too much control over the large pool of data of the firm. Moreover, the Salesforce’s public stance against the Microsoft’s acquisition appeared three months after it lost a bidding war for LinkedIn.

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That time, both the firms were showing their interest for the possible acquisition of the LinkedIn Corp., as the professional network controls a lot of valuable information, where over 450 million members from 200 countries are registered on the website.

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The Chief legal officer at Salesforce, Burke Norton, stated that owning LinkedIn would provide Microsoft with an unfair competitive advantage as it has the possibility to block the access of rivals to the data. He added that the deal also raises “data privacy issues.” Mr. Norton has stated:

“Microsoft’s proposed acquisition of LinkedIn threatens the future of innovation and competition.”

Salesforce’s initiative could work against the firm

Microsoft has reacted to Salesforce’s comments by highlighting the fact that the deal had already passed regulatory inspections in some countries. Moreover, Microsoft has stated that it is Salesforce that dominates the market for software that controls the customer relationship management (CRM), which is the exact market in which LinkedIn’s data can help Microsoft to compete against Salesforce. Microsoft’s Chief legal officer, Brad Smith, has commented:

“Salesforce may not be aware, but the deal has already been cleared to close in the United States, Canada, and Brazil. We’re committed to continuing to work to bring price competition to a CRM market in which Salesforce is the dominant participant charging customers higher prices today.”

Salesforce’s initiative could work against the firm, in case the company was to acquire the social network Twitter Inc., as the media have reported it is trying to do. Furthermore, firm’s argument that Microsoft may block rivals’ access to LinkedIn’s data would have been applied to Salesforce, if it was successful in its effort to own the website.

However, Salesforce has not filed any official complaints against Microsoft regarding the LinkedIn acquisition.

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