European Union commission approves Microsoft's GitHub buyout

Irving Hamilton
October 20, 2018

The European Commission says the "merged entity" Microsoft and GitHub would consist of post-acquisition would not pose a significant antitrust threat, because it would still face "significant competition" from other companies in related markets. Today, their investigation concluded, and it seems the Commission doesn't believe there's anything to worry about - as it announced in a press release today, the regulatory body has approved Microsoft's purchase of GitHub "unconditionally".

Fortunately for Microsoft, the $7.5 billion acquisition was seen as having little undermining power to the open nature of GitHub, perhaps, due in part to Microsoft's war chest of open source contributions.

As reported by Reuters, the European Union antitrust commission said the following in a statement: "The Commission found that the combination of Microsoft and GitHub's activities on these markets would raise no competition concerns because the merged entity would continue to face significant competition from other players on both markets".

"Microsoft is a developer-first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation", Satya Nadella, CEO of Microsoft, said at the time.

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While GitHub will remain as an open platform, Microsoft is hoping to use the service to boost its own cloud efforts.

"We recognize the community response we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world's most pressing challenges".

Second, we will accelerate enterprise developers' use of GitHub, with our direct sales and partner channels and access to Microsoft's global cloud infrastructure and services.

Finally, we will bring Microsoft's developer tools and services to new audiences.

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