The European Commission today announced the approval of the acquisition of GitHub by Microsoft. The Commission found that the combination of Microsoft and GitHub would not raise competition concerns because the merged entity would continue to face significant competition from other players on both markets.
The Commission also assessed whether there would be a risk of weakened competition, if Microsoft were to leverage the popularity of GitHub’s software development platform to boost its own sales of DevOps tools and cloud services. In particular, the Commission looked at whether Microsoft would have the ability and incentive to further integrate its own DevOps tools and cloud services with GitHub while limiting integration with third parties’ DevOps tools and cloud services.
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 behavior would reduce the value of GitHub for developers, who are willing and able to switch to other platforms.
Microsoft has acquired GitHub for $7.5B in stock. There are 85 million repositories hosted on GitHub, and 28 million developers contribute to them.