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Saturday, September 11, 2004David Kirkpatrick writes,"The government has consistently shown that it does not understand either the pace of change or the complexity of the technology industry."DOJ's attempt to block Oracle was no more logical than its efforts to break up Microsoft. Who knew back then that Linux would come along and become the real competitor for this "monopoly"? Once Oracle achieved the coup of showing in court that Microsoft and SAP had contemplated merging, the logic of the government's case began to evaporate. Microsoft-SAP would make even a beefed-up Oracle puny in comparison, and the notion that a combined Oracle-PeopleSoft would wield undue market power in enterprise applications was nonsensical. Not that Microsoft and SAP are likely to actually combine. But the market is more fluid, more dynamic, and contains more important players than the government and other players wanted to acknowledge The entire software industry has won a victory here, in my view, by exposing and documenting many of the subtle industry dynamics regulators have never understood.
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