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Wednesday, December 11, 2013
European Court Rejects Cisco's Challenge Of Microsoft-Skype Deal


Europe's second highest court upheld a decision on Wednesday by European Union regulators clearing Microsoft's $8.5 billion takeover of Skype in 2011, rejecting a challenge by Cisco Systems Inc.

In September 2011, Microsoft notified to the European Commission the concentration by which it intended to acquire control of Skype.

Cisco and Italian fixed-line and Internet telephone provider Messagenet SpA submitted observations to the Commission by which they sought to demonstrate the anti-competitive effects that the planned merger would have.

In October 2011, the EC approved the Microsoft-Cisco merge, and Cisco and Messagenet brought an action before the Luxembourg-based General Court for annulment of the Commission?s decision.

The General Court said Cisco failed to show that the takeover would harm competition.

"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 and Messagenet can appeal to the EU Court of Justice.



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