TechnologyAccounting SoftwareSage contests Microsoft/Navision merger

Sage contests Microsoft/Navision merger

Managers and lawyers of UK accounting software giant Sage have begun lobbying European Union competition authorities and the Office of Fair Trading in an attempt to prevent Microsoft's near £1bn acquisition of Navision.

A delegation from the Newcastle-based company, which included Paul Stobart, chief operating officer, reported to the OFT after flying to the EU in Brussels and the Danish Competition Authorities, to fight the deal.

Sage is arguing that Microsoft will bundle Navision software into its larger suite of software and sell the product at a big discount – killing the competition.

The dispute has so far centred on the Danish market, where Navision has 57% of the market for business software, however it is possible Sage may take issue with the deal in additional countries.

A Sage spokeswoman said: ‘We have brought the matter to the attention of the Danish authorities, believing they should look into the situation. We believe they should look at the anti-competitive consequences in the Danish market for SMEs.’

However, a Microsoft spokesperson, said: ‘We are disappointed Sage has decided to intervene with the Danish Competition Authority to oppose our proposed acquisition. We are confident the acquisition is in full compliance with EU law including Denmark, and look forward to completing the deal as anticipated this summer.’

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