14 DAY TRIAL // Microsoft welcomed a decision by the European Commission giving green light to move forward with its acquisition of Skype. The Redmond company announced plans to acquire Skype in the first half of May 2011, but the deal needed clearance from regulators on both sides of the Atlantic ocean.
The United States Federal Trade Commission already approved the deal in June 2011, and the Redmond company needed the go-ahead from the European Commission as well.
European antitrust regulators took a bit more time than their U.S. counterparts, but reached the same conclusion, Skype’s acquisition by Microsoft doesn’t “significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.”
The Commission made it clear that there are numerous players offering instant messaging and Voice over Internet Protocol (VoIP) services, citing Google in particular, and that the growing market would not suffer from Microsoft swallowing Skype.
Brad Smith, General Counsel and Executive Vice President, Microsoft, applauded the EC’s decision:
“We’re pleased that the European Commission has approved Microsoft’s acquisition of Skype. This is an important milestone, as we’ve now received clearance from both the United States and the European Union,” he stated.
The software giant revealed earlier this year that it would pay no less than $8.5 billion in an all-cash transaction for Skype.
Born as a result of the acquisition, the new Microsoft Skype Division will be helmed by current Skype Chief Executive officer (CEO) Tony Bates which will receive the title of Microsoft President.
The Redmond company is now looking to wrap up the deal and expand its existing communication services such as Windows Live Messenger and Lync with the addition of Skype.
“We look forward to completing soon the final steps needed to close the acquisition, bringing together the employees of Microsoft and Skype, and creating new opportunities for people to communicate and collaborate around the world,” Smith added.