View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
December 12, 2013

Cisco loses EU court challenge to stop Microsoft’s Skype buyout

Microsoft’s acquisition of Skype is compatible with EU competition law, judges said.

By CBR Staff Writer

The European General Court in Luxembourg has rejected Cisco’s bid to overturn Microsoft’s $8.5bn acquisition of Skype.

Cisco claimed that Microsoft’s purchase of the video and voice messaging service was anti-competitivem, but the court ruled that the networking company had failed to explain how the takeover would harm competition.

The judges said:"The merger does not restrict competition either on the consumer video communications market or on the business video communications market."

Cisco’s huge share in the enterprise communications market and the existence of other competitors will prevent Microsoft from hindering competition in the sector.

In a statement, Cisco said it is disappointed that the court did not require the EU to revisit interoperability requirements for the merger

"We are hopeful that in the interest of customers and consumers, Microsoft and others in the industry will join us and continue to rally around this ideal and work together to achieve an open, interoperable video community," the networking firm said.

Cisco together with Italian fixed-line and Internet telephone provider and Skype rival Messagenet initially said they would not appeal to the EU Court of Justice, but later withdrew that statement.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

The European Commission said in a statement: "Today’s judgment by the EU General Court (GC) confirms that the Commission was correct in its assessment that the acquisition of Skype by Microsoft would not significantly impede effective competition in the European Economic Area (EEA).

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU