Fluendo Group Concerned over EC threat to open-source investment
Dec. 9, 2009, 12:01 p.m.
Leading Spanish software company Fluendo S.A. today expressed its concern that, if upheld, the European Commission's objections regarding Oracle’s acquisition of Sun could set a precedent that will undermine the development of open source technology worldwide.
As a key contributor to the Free Software multimedia landscape, the Fluendo Group believes that the Commission should abandon its view that any open source software product represents a price constraint on proprietary vendors, regardless of actual competition. If this precedent is established a vital source of funding for OSS vendors will dry up.
Venture capitalists and potential acquirers will perceive open source software offerings not as an asset, but as a liability which engenders greater antitrust scrutiny and potential prohibition, said Pascal Pegaz Paquet, co founder of Fluendo. Venture capitalists, who are a vital source of financing for emerging technologies, will no longer be willing to invest, he added.
At a time when policymakers should be doing everything they can to promote innovation, the Commission is threatening to set a precedent that will choke off financing for development of open source software ventures, particularly in Europe - said Mr Pegaz Paquet.
Fluendo follows a very similar path to MySQL and we are quickly gaining market share against giants on various market segments including broadcasters with our streaming solutions, hardware manufacturers with our codecs, etc... The outcome of that case with Oracle and Sun might definitely make our life harder when it comes to working with VCs or potential M&As - said Julien Moutte, chief executive officer and co founder of Fluendo.