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EU: Cisco falls short in challenge against Microsoft’s Skype buyout

By  |  December 11, 2013

The EU General Court dealt a blow to the world’s largest network equipment manufacturer Wednesday when it ruled Cisco failed to adequately prove Microsoft’s buyout of Skype threatens competition.

Cisco stood before the Court last May to challenge the acquisition, made in 2011, claiming that the deal created a monopoly and that the European Commission failed when it approved the deal.

The General Court judges said in their decision that the $8.5 billion deal between Microsoft and Skype “does not restrict competition either on the consumer video communications market or on the business video communications market.”

Further, the judges ruled that Cisco’s significant market share in the video communications market, and other rivals in the industry, provide sufficient competition against Microsoft.

The Court’s decision allows Microsoft to continue marketing Skype services to its customers and businesses.

Full Content: Reuters

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