Cisco challenges Microsoft takeover of Skype in EU

Networking company Cisco said Wednesday that it is challenging Microsoft's $8.5 billion takeover of Skype at the European Union's top court to ensure Microsoft won't block other video conferencing services. Cisco says that it does not want to block the merger entirely, just restrict it and require Microsoft to make Skype play nicely with other voice and video calling systems.

"The industry recognizes the need for ubiquitous unified communications interoperability, particularly between Microsoft/Skype and Cisco products, as well as products from other unified communications innovators," said Marthin De Beer, Cisco vice president on the corporate blog. "Microsoft's plans to integrate Skype exclusively with its Lync Enterprise Communications Platform could lock-in businesses who want to reach Skype’s 700 million account holders to a Microsoft-only platform."

Skype does have a product, Skype Connect, that can bridge between Skype and SIP-based telephony systems for voice communications, and at various times has offered facilities to bridge to other PBXes. But for the most part, it has no interoperability with any other voice or video systems.

Microsoft said it was confident it would prevail in an appeal:

"The European Commission conducted a thorough investigation of the acquisition, in which Cisco actively participated, and approved the deal in a 36-page decision without any conditions".

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