Oracle and the EU are escalating their legal battle over the Sun acquisition. The EU took the first step towards blocking the merger Monday with a formal Statement of Objections. Oracle immediately responded with a statement of its own, saying the EU has a "profound misunderstanding" about competition in the database market and "open source dynamics". Sources expected the objection to come soon after Oracle, led by CEO, Larry Ellison, refused to give up the MySQL database in the merger. The company says it will "vigorously oppose" the EU's Statement of Objections.