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EU Approves Microsoft, Skype Deal

 & Chloe Albanesius Executive Editor, News

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The European Commission on Friday officially approved the merger of Skype and Microsoft, concluding that combining the two companies would not significantly affect competition.

"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 EU said in a statement.

"For enterprise communications, the investigation confirmed that Skype has a limited market presence for these products and does not compete directly with Microsoft's enterprise communication product Lync, which is used mostly by large enterprises," the commission concluded.

The commission found that Microsoft would not gain anything by removing Skype from competing platforms like Google's Android or Apple's iOS because that would not help "maintain and enhance the Skype brand." As for concerns that it might be tied to or bundled with Microsoft products, the EU said that "the vast majority of consumers who acquire a PC with Skype already installed are registered Skype users and ... most of them subsequently download a version different from the pre-installed one."

Microsoft announced plans to acquire Skype in May for $8.5 billion. It received approval in the U.S. from the Federal Trade Commission in June. The deal must still be approved in Russia, the Ukraine, Serbia and Taiwan, according to the New York Times.

In recent months, Skype has added video calling to a number of Android phones and released an iPad app (slideshow below), but also battled a mid-summer outage.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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