Commission clears acquisition of Skype by Microsoft
The European Commission approved under the EU Merger Regulation the proposed acquisition of sole control of the Internet voice and video communication provider Skype by Microsoft Corporation.
The European Commission approved acquisition of Skype by Microsoft. According to the European institutions, the deal would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. Microsoft Corporation is a United States based corporation primarily involved in the design, development and supply of computer software, operating system and related services. Skype Global S.a.r.l. provides communications over the Internet. Its software enables instant messaging, voice, and video communication.
The investigation done by the Commission confirmed that Skype has a limited market presence for enterprise communications and does not compete directly with Microsoft's enterprise communication product Lync, which is used mostly by large enterprises. Besides, in the area of consumer communications, the investigation found that the parties' activities mainly overlap for video communications, where Microsoft is active through its Windows Live Messenger. However, the Commission considers that there are no competition concerns in this growing market where numerous players, including Google, are present.
The Commission has the power to assess mergers and acquisitions involving companies with a turnover above certain thresholds (Article 1 of the Merger Regulation) since 1989. Its duty is to prevent concentrations that would significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.