Salesforce, the largest CRM software company, which was once the forerunner in LinkedIn’s acquisition, is still glum and hasn’t healed from losing the bidĀ to Microsoft. The Redmond giant had swooped in to pickĀ the enterprise social network for a whopping $26.2 billion, but Salesforce is now trying to convince the EU(and U.S) to blockĀ the deal.
The European Union has recently taken measures to exercise stringent control over enterprises, and has even quoted that they’ll directly look into a company to see if their use of data hurts the competition or not. Salesforce, who is already hurting, is using the same to argue that the Microsoft-LinkedIn deal would hurt competition by giving RedmondĀ access to a vast pool of user data.
Salesforce’sĀ Chief Legal Officer Burke Norton addsĀ that Microsoft owning LinkedIn would give them unfair advantage over competetive rivals, whom they’ll block access to company data. This acqusition, he believes, isĀ anticompetetive and raises ‘data-privacy’ issues that SalesforceĀ thinks regualtory bodies should scrutinize.
Microsoftās proposed acquisition of LinkedIn threatens the future of innovation and competition. By gaining ownership of LinkedInās unique dataset of over 450 million professionals in more than 200 countries, Microsoft will be able to deny competitors access to that data, and in doing so obtain an unfair competitive advantage,
said Norton in a statement on Thursday.
Microsoft didn’t sit quietly after the aforementioned antitrust allegations and fired back by adding that — it is Salesforce who dominates the customer relationship software market and not the other way round. And LinkedIn acquisition and its data canĀ only help Microsoft fight the over-competitive Salesforce and captureĀ a shareĀ of the CRM market. The company also goes on to add that the acquisition deal has already been passed regulatory proceedings in some countries.
Salesforce may not be aware, but the deal has already been cleared to close in the United States, Canada, and Brazil. Weāre committed to continuing to work to bring price competition to a CRM market in which Salesforce is the dominant participant charging customers higher prices today,
said Brad Smith, Microsoftās chief legal officer.
Salesforce can cry all it want for not being able to acquire the enterprise social network LinkedIn, but the pleas for an investigation into anti-trust issuesĀ of the deal wouldn’t yield any results. Due to the humongous amounts of data involved, European Union could surely take a deeper look into the deal but that would only lead to a minor delay in the acquisition. And as Rachel King from WSJ rightly points out,
Salesforceās contention that Microsoft might deny competitors access to LinkedInās data would have applied equally to Salesforce if it had been successful in its effort to acquire the network.
But, theĀ CRM leader is not taking a backseat and has now joined the race to acquire micro-blogging platform Twitter, which has yet again surfaced for sale on the market. Salesforce is competing with high-potential bidders including Google, Apple, Microsoft and even Disney. Last we heard, Twitter had been asking for almost $18 billion — which isn’t quite understandeable by possible bidders.
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