The General Court (“GC”) handed down its judgment dismissing Cisco Systems' appeal against the Commission’s decision of October 2011 to clear the acquisition of Skype by Microsoft. GC’s judgment confirms that the Commission was correct in its assessment that the acquisition would not significantly impede effective competition in the EEA. In the area of consumer communications, Microsoft’s and Skype's activities mainly overlap in video communications. The GC confirmed that the Commission was correct in finding that even on the narrow market for consumer video communications on Windows-based PCs only, Microsoft/Skype's high combined market share of 80 to 90% was not indicative of market power. This was due to the particular characteristics of the market in question, marked by short innovation cycles and free products. If Microsoft started to make PC users pay for such products, this would only encourage them to switch to other providers that continue offering their services free of charge. Furthermore, in the quickly evolving and fast growing market where strong competitors are present, account should also be taken of the increasing use of mobile phones and tablets, where Microsoft is a relatively small player. The GC also held that the Commission's assessment of possible conglomerate effects was correct. In particular, the GC rejected the argument of Cisco and Messagenet that Microsoft would be able to reserve to Lync, its product for enterprise communications, preferential interoperability with Skype and with Skype's large user base, to the detriment of competitors. Source: General Court’s Press Release 11/12/2013 and Commission Press Release 11/12/2013