Does this takeover impede competition?
Cisco has announced that it is set to challenge
Microsoft’s proposed takeover of
Skype, which is worth approximately $8.5 billion. It has said that certain conditions need to be outlined to ensure that Microsoft does not block other video services in the future. While the company does not oppose the takeover, it wants to make sure that standards are in place similar to those in the mobile phone industry.
Cisco's video conferencing head, Martin De Beer, posted a blog stating, “"Cisco does not oppose the merger, but believes the
European Commission should have placed conditions that would ensure greater standards-based interoperability." The European Commission said in October that the deal would not prevent competition and is set to stand by that decision.