By Vamien McKalin | May 30, 2013 12:59 PM EDT
Microsoft's troubles with Skype is not yet over, as Cisco Systems Inc is planning to appeal to the European Commission to have Microsoft's $8.5 billion acquisition of Skype reviewed for rivals to compete more effectively.
Cisco is not making this appeal to the European Commission on its own; the company has joined forces with Italian fixed line and Internet service provider, MessagenetSpa, claims a Reuters report. Both companies are out to convince the European Commission that the decision to allow Microsoft to buy the Internet video and voice company without having to make any concession is not correct, and thus should be overturned.
If the European Commission should choose to side with Cisco, that would force Microsoft to provide data that would allow rivals to work with the merged firm's products. This might not be a path Microsoft would want to travel, which means the company would have to come up with a very good defense to keep Skype's data out of the hands of other rivaling factions.
Back in 2011, Cisco attempted to get the Microsoft and Skype merger overturned but failed. The reason behind that attempt is that Skype's PC-based teleconferencing tech does not work well with Cisco's room based teleconferencing tech. Cisco wants the courts to force Microsoft into making Skype's technology plays well with its own, but the company could have a hard time in convincing the European Commission.
The truth behind the matter is, Skype teleconferencing tech can definitely work with Cisco's own tech. The problem is Cisco would be forced to purchase a Microsoft service called Skype Connect, but that is not something the company is willing to do. Instead, Cisco would rather if Microsoft changes its own tech to work better with its teleconferencing tech. Only time will tell if the European Commission would find this as a good reason to review its 2 year old decision.
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