The filing activates a 30-day deadline for antitrust regulators to determine whether to allow its takeover bid to go through or to seek a more in-depth review.
If the European Commission or the U.S. Department of Justice challenge the merger, it could be a deal stopper for Oracle. Over the years, the European Commission, an antitrust regulatory body for the European Union, has increasingly wielded great power in determining the fate of companies' mergers. Its role is considered to be as influential as the Department of Justice, antitrust experts say.
The commission has set a provisional deadline to make a decision on the deal by Nov. 17, according to a filing on the agency's Web site.
If the commission determines it wants a closer look at the takeover bid, it can move the deal into its "in-depth second phase," which can last up to four more months.
Before filing its official notification, Oracle provided documents and information to the European Commission as part of a "pre-notification process," Chuck Phillips, executive vice president of the company, said during a press conference at OracleWorld in September.
Pre-notification allows European regulators to become familiar with the case and issues involved, before the strict 30-day deadline kicks in once a formal notification is filed.
Oracle also is in the process of supplying documents and materials to the Department of Justice after the agency made a second request for more information. During the company's annual shareholders meeting Monday, Jeff Henley, Oracle's chief financial officer, said he is hopeful regulators will wrap up that effort by November or December.
"If the (Department of Justice) says we can't buy, it's over," Oracle CEO Larry Ellison said during an analyst presentation in July.
Once Oracle has fully complied with the department's second request, federal antitrust regulators will have 30 days to determine whether to approve, modify or challenge the deal. Oracle can agree to extend the agency's 30-day review deadline, whereas the European Commission has less flexibility.
Oracle announced its US$16 per share takeover bid for PeopleSoft in early June and later raised its offer to US$19.50 per share.
PeopleSoft, meanwhile, has argued the deal poses antitrust issues and pointed to a lawsuit filed against Oracle by the state of Connecticut and investigations by state attorneys general in 38 states. Canada also is reviewing the proposed merger for antitrust issues.
European Commission makes a decision before the Department of Justice or the 38 state attorneys general, it may not have great sway with domestic regulators.
"The states will look at the facts the EC used in making their decision and see if the information they used is similar to what we have," Brady Johnson, assistant attorney general with the antitrust division for Washington said, referring to how states in general review a European Commission decision in a merger case.
"But considerations will likely be very different," Johnson added. "Different market share issues here compared to Europe, different laws to apply. It's not a one-to-one consideration."
