Setback For Cisco: EU Court Upholds Microsoft’s Skype Acquisition



Almost two years ago now Microsoft gained approval from all governments, including the European Union, on its acquisition of Skype.  The European Commission allowed Microsoft to buy Skype without having to make any concessions. Cisco was not happy about this, as they have their own video conferencing solutions, and has been against Microsoft’s purchase from the beginning. Cisco along with Italian fixed-line and Internet telephone provider Messagenet SpA went to the EU’s second highest court, in Lexembourg, to appeal the European Commission’s decision to approve the deal.

Cisco earlier argued that Microsoft’s acquisition of Skype created a monopoly and that the EC was wrong to approve the deal without demanding concessions from Microsoft. Today, European Union court rejected Cisco’s claims and upheld their decision to approve Microsoft/Skype deal.

“Microsoft’s acquisition of Skype is compatible with the internal market. The merger does not restrict competition either on the consumer video communications market or on the business video communications market,” the judges said.

Cisco can still appeal to the EU Court of Justice.

Source: Reuters

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