UPDATED: EU court rejects Cisco's objection to Microsoft Skype deal

EU court rejects Cisco's objection to Microsoft Skype deal

It seemed as though the deal between Microsoft and Skype was all done and dusted, but back in May Cisco System Inc challenged the acquisition, suggesting that a monopoly was being created. A European court has now rejected this complaint, leaving the deal free to reach its conclusion.

The General Court in Luxembourg -- the second-highest court in Europe -- overruled Cisco, saying that the company had failed to successfully argue that the takeover would lead to harm to competition.

The judges said: "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".

In spite of this latest ruling, there is still scope for the acquisition to be derailed. Cisco could still appeal against the court's decision, but there is currently no word about how likely this is.

Update

In a statement emailed to WinBeta, Cisco expressed hope that Microsoft and other companies could work together to acheive a better level of interoperability:

"Cisco is disappointed that the Court did not require the EU to revisit interoperability requirements for the Microsoft/Skype merger; however we remain committed to interoperability and will continue to work to make video calling as easy as making a phone call or sending an email.  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."