Cisco has failed to convince the European courts that Microsoft's buyout of Skype messaging service created unfair market conditions.
The ruling on Wednesday confirms the validity of the £5.2bn merger, which was approved in 2011, as Cisco has chosen not to take the case to Europe's highest court, the European Court of Justice.
Rather than opposing the deal outright, Cisco was looking for the EU to put a new set of technical standards in place to make video conferencing software, including its own TelePresence brand, compatible with one another.
The European General Court's judges disagreed, saying the buyout had not created adverse market conditions, Reuters reported. "Microsoft's acquisition of Skype is compatible with the [EU] internal market," the judges said. "The merger does not restrict competition either on the consumer video communications market or on the business video communications market."
Cisco filed the case in February 2012 alongside Italian VoIP service Messagenet, warning that the merger would create a monopoly. "Cisco wants to avoid this future for video communications," the company said at the time.
Following Wednesday's decision, Cisco spokeswoman Alison Stokes said: "Cisco is disappointed that the court did not require the Commission to revisit interoperability requirements for the Microsoft-Skype merger."
Meanwhile, the EU's antitrust regulator said the ruling vindicated its initial approval of the buyout more than two years ago. "Today's judgment by the EU General Court confirms that the Commission was correct in its assessment that the acquisition of Skype by Microsoft would not significantly impede effective competition in the European Economic Area," it said.
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