Why Microsoft shouldn’t celebrate Cisco’s European Skype defeat too much


Cisco(s csco) has failed in its attempt to reverse the European Union’s approval of Microsoft(s msft)’s 2011 $8.5 billion Skype takeover – but the thinking behind the verdict should dampen any Microsoft celebrations.

When the EU green-lit the deal with no reservations, Cisco – which makes expensive videoconferencing gear for the enterprise — threw a hissy fit. It and Italian VoIP outfit Messagenet launched a challenge with the EU General Court, claiming the deal would harm competition. On Wednesday, the court dismissed the action in its entirety.

The logic behind this decision can be fairly summed up like this: Microsoft’s position in the consumer market is not enough of a sure thing to go worrying about market domination. The verdict should not make for comfortable reading over in Redmond:

“Even if the acquisition of Skype enables Microsoft to hold an 80 to 90% share of a segment of consumer…

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