June 4 (Reuters) - Europe's largest software maker SAP
(SAPG.DE) has asked the U.S. Supreme Court to review a decision
that said the technology giant must face a lawsuit by U.S. data
technology company Teradata ( TDC ) accusing it of violating antitrust
law.
SAP in a petition made public on Tuesday said a decision by
the 9th U.S. Circuit Court of Appeals in California that
reinstated Teradata's ( TDC ) lawsuit will threaten American tech
innovation if it is left in place.
Teradata ( TDC ) accused SAP of violating antitrust law by "tying"
sales of business-planning applications with the purchase of a
key SAP database that can perform transactional and analytical
functions. Teradata ( TDC ) makes a rival analytics database.
In its filing at the high court, SAP said the integration of
software products can often benefit consumers and "represent an
effort to 'compete effectively,' rather than to stifle
competition."
SAP declined to comment. Teradata ( TDC ) did not immediately
respond to a request for comment.
San Diego-based Teradata ( TDC ) filed its lawsuit against SAP in
federal court in California in 2018. The two companies once had
a joint venture, but SAP terminated it after developing its own
analytics database.
SAP won in the district court, but the 9th Circuit revived
Teradata's ( TDC ) case in December. The appeals court said there was
material dispute between the companies that a jury could decide.
If the Supreme Court takes the case, the justices could rule
on which legal standard judges should use to weigh antitrust
tying claims.
Two key legal standards guide how judges resolve whether
conduct restrains competition: the "per se rule," where alleged
conduct is presumed illegal, and the "rule of reason," where
judges balance between anticompetitive effects and a defendant's
procompetitive justification.
The 9th Circuit, using a version of the "per se rule,"
applied too stringent a standard in evaluating Teradata's ( TDC )
claims, SAP told the justices.
SAP said the appellate court's ruling clashed with how a
Washington federal appeals court resolved a landmark antitrust
case against Microsoft in the 1990s.
The case is SAP SE et al v. Teradata Corp ( TDC ), U.S. Supreme
Court, unassigned.
For SAP: Kannon Shanmugam of Paul, Weiss, Rifkind, Wharton &
Garrison
For Teradata ( TDC ): No appearance yet