Cisco Systems will file a challenge with the European Union against Microsoft's $8.5 billion bid to acquire Skype, the company has revealed.

 

Cisco Systems will file a challenge with the European Union against Microsoft's $8.5 billion bid to acquire Skype, the company has revealed.

 
The networking giant said it does not oppose the merger itself, but it wants the European Commission to put in place a number of conditions that would ensure “greater standards-based interoperability.”
 
Cisco has its own video conferencing software, WebEx, but it is nowhere near as popular as Skype, which has more than 650 million users across the globe. Open standards could allow WebEx calls to Skype, Google Video and other video software, but it could also weaken Skype's dominance in this area.
 
 
Cisco fears that Microsoft will control the future of video conferencing if an open standard is not adopted. Cisco's approach would certainly provide significant benefits to users so that they can make seamless video calls from one platform to another, but whether or not Microsoft should be obliged to do this remains to be seen.
 
Microsoft announced the acquisition in May 2011 and the European Commission gave it the green light in October, deciding that the deal would not negatively affect competition. Cisco's legal action, however, puts the EC in the spotlight, but the EC said it would defend its decision in court.
 
Source: BBC