Cisco Appeals The Microsoft Skype Merger Approval In The European Union

The video conferencing service from Skype is one of the best on the market, and for sure, it did not become so popular by chance. Combined with the functional Microsoft Lync, it will become an attractive communications tool. Therefore, Cisco, a leading provider of this service will attempt to appeal in court the merger of these two companies. The multinational company mainly engaged in the manufacture, sale, maintenance and consulting of telecommunications equipment, will try to reduce the power of the potentially formidable tool that would result from the merger Microsoft-Skype.
The reason is simple: it’s a clear fact that Cisco will have problems in distributing their own video communications service. And if Microsoft adds Skype to the already 170 million users of Lync, it will create a formidable challenge to Cisco’s videoconferencing”, says Andrew Davis, senior partner at Wainhouse Research. “When Microsoft will incorporate Skype in Lync, a communications platform for enterprises, they will have a significant advantage over many companies”, said Davis.
With the huge working customer base of Skype, Lync will become a powerful engine that could be used for sales and technical support. Something that would ruin Cisco. People that have Lync at their job, could join their friends who are already on Skype, especially because many business users already have the Skype client on their laptops, says Matthias Machowinski, analyst at Infonetics.

Cisco Appeals The Microsoft Skype Merger Approval In The European Union

For its part, Cisco is trying to stop the possible merger with arguments like this: “Imagine how difficult it would be to limit yourself to call people who only use the same phone company, “said Marthin De Beer, senior vice president of Cisco’s video. Cisco is asking the General Court of the European Union to modify its approval for the merger of Skype’s and Microsoft’s services in order to prevent the former to take control of the video communication market. Ironically, two years ago Cisco was accused of doing something very similar when it bought Tandberg, a videoconferencing provider.
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