The EU reported it was aware of risks of anti-competitive issues, but added it would not be investigating the deal any further. Microsoft was delighted by the decision, and said it expects to complete the deal before the end of the summer.
However, rivals such as Sage, fear the move may lead to Bill Gates’ company ‘bundling’ Navision products with its own, and could lead to smaller companies being squeezed out of business.
Sage chief operating officer Paul Stobart, said Microsoft had already begun a similar programme in the US since acquiring US company Great Plains.
Microsoft would not be drawn to comment on the issue of bundling.
However, the US giant has signalled its intent to dominate the accounting software market across the globe after spending over £1.5bn on two companies, Navision and Great Plains over the past 18 months.
It has already moved to acquire Great Plains in a £757m buyout, but further acquisitions are likely according to market experts.
Nobody at the European Commission competition office was available for comment.