EU approves acquisition of GitHub by Microsoft

Oct 20, 2018 08:06 GMT  ·  By  ·  Comment  · 
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Microsoft will pay $7.5 billion for GitHub
   Microsoft will pay $7.5 billion for GitHub

The European Commission has officially approved the takeover of GitHub by software giant Microsoft, explaining that there’s no sign that the latter would “undermine the open nature” of the service.

Microsoft announced earlier this year that it would purchase GitHub for $7.5 billion and it promised to let the company run independently.

Concerns regarding Microsoft’s involvement in GitHub’s business rapidly spread across the world, and a number of developers decided to abandon the service, moving their projects to alternative platforms.

The Redmond-based software firm, however, emphasized that Microsoft and GitHub are set to evolve together, not with changes that would eventually impact the culture of the latter, but with improvements that would continue its existing approach.

Takeover receives EU’s blessing

The EU says Microsoft taking over GitHub wouldn’t affect competitors, so the deal can go through.

“The European Commission has approved under the EU Merger Regulation the proposed acquisition of GitHub by Microsoft. The Commission concluded that effective competition in the relevant markets would continue and Microsoft would have no incentive to undermine the open nature of GitHub's platform,” a press announcement reads.

“The market investigation confirmed that Microsoft would not have the market power to undermine the open nature of GitHub to the detriment of competing DevOps tools and cloud services. This is because such behaviour would reduce the value of GitHub for developers, who are willing and able to switch to other platforms.”

Microsoft is currently the biggest GitHub contributor and other tech giants are also using the service, including rivals Apple and Google. The search company has been one of those requesting Microsoft’s to leave GitHub’s culture untouched amid concerns that controversial changes would be implemented.

GitHub is Microsoft’s second major acquisition in the last couple of years, after the company purchased business social networking service LinkedIn for a record $26 billion.

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