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Messagenet Claims Microsoft Acquisition of Skype Could Limit Competition in Marketplace

Microsoft's biggest acquisition, the purchase of Skype for a massive $ 8.5 billion, is facing opposition from a small Italian firm, Messagenet.

In a written communication to the European Commission, Messagenet warned that if Microsoft is allowed to take over Skype this might lead to antitrust ramifications. The warning could lead to unbinding Skype from Microsoft dominant Windows Office suite before the approval of the deal by the commission.

This acquisition by Microsoft will empower the new Windows Phone 7 to compete with Google and Apple smart phones.

Messagenet’s owner Andrea M. Galli forecasts that "the primary effect of the merger will be to exclude potential competitors from the market."

Besides requesting the commission to unbind Skype from Windows as a condition of the merger, Messagenet also requested the commission to force Skype to make the phone services interoperable with other Internet phone providers.

The Microsoft has yet not responded to the letter officially. However, as per a statement by a Microsoft Spokesperson, Microsoft and Skype are conducting their business as usual as the acquisition is still in regulatory review.

The deal has been already approved by the US authorities and the European Commission is expected to make a decision next week.