Cisco loses fight to reverse Microsoft's purchase of Skype in European court

Microsoft bought the Skype VoIP service in 2011 for $8.5 billion, but rival Cisco went to court in Europe to reverse that move in 2012. Today, a decision from the Luxembourg-based General Court has handed defeat to Cisco and allows the Microsoft-Skype merger to continue without any changes.

Reuters reports that while Cisco tried to argue that the purchase of Skype by Microsoft created a monopoly in video conferencing, the court felt differently. The judges' statement said:

Microsoft's acquisition of Skype is compatible with the (European Union's) internal market. The merger does not restrict competition either on the consumer video communications market or on the business video communications market.

Cisco, who filed their opposition to the merger along with European Skype rival Messagenet, said they wanted to see Microsoft and other companies work on a common set of standards for video conferencing so that different products could work together. In a statement after the ruling, it said, "Cisco is disappointed that the court did not require the Commission to revisit inter-operability requirements for the Microsoft/Skype merger." However, it also said it would not appeal today's decision to Europe's highest court.

Source: Reuters | Image via Microsoft

Report a problem with article
Previous Story

Leaving Microsoft: Ballmer's exit interview talks lawsuits and Xbox

Next Story

Microsoft makes switching from Gmail to Outlook.com easier

21 Comments - Add comment