Microsoft fended off a challenge to its $8.5 billion takeover of messaging service Skype when Europe's second-highest court ruled against claims by rival Cisco that the 2011 deal would harm competition.

The decision yesterday means Microsoft can continue to market Skype’s video calls to consumers and businesses without making any concessions to Cisco or others offering similar products.

Cisco’s concern about the Skype deal stems from the fact it sells more expensive hardware to help companies with video conferencing, while Microsoft’s alternative, based on Skype, can do much the same via a computer equipped with a webcam. Cisco said at a hearing in May Microsoft’s acquisition of Skype, the largest Internet video and voice messaging provider, created a monopoly. – (Reuters)