Cisco Systems Inc., v European Commission, Microsoft Corp [2013] EUECJ T-79/12 (11 December 2013)

Cisco Systems Inc., v European Commission, Microsoft Corp [2013] EUECJ T-79/12 (11 December 2013)

The General Court found that the Commission did not commit manifest errors of assessment in its analysis of the horizontal and conglomerate effects of the Microsoft/Skype concentration. The Commission's reasoning regarding market shares, network effects, and competitive harm was adequate, and the applicants failed to demonstrate that the concentration would significantly impede effective competition. The Court also held that the Commission fulfilled its obligation to state reasons and that the application was admissible.

Citation
[2013] EUECJ T-79/12
Parties
Applicant: Cisco Systems Inc.; Applicant: Messagenet SpA; Respondent: European Commission; Intervener: Microsoft Corp.
Jurisdiction
European Union
Judgment Date
11 December 2013
Procedural Posture
Annulment Action (eu Merger Control) / Judgment of the General Court
Outcome
Application dismissed
Legal Topics
Merger Control, Horizontal Mergers, Conglomerate Effects, Market Definition, Locus Standi, Standard of Proof, Obligation to State Reasons
Competition Law EU Law Merger Control Horizontal Mergers Conglomerate Effects Market Definition Locus Standi Standard of Proof +1 more

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Parties

Cisco Systems Inc.

Applicant

Messagenet SpA

Applicant

European Commission

Respondent

Microsoft Corp.

Intervener

Procedural Posture

Annulment Action (eu Merger Control) / Judgment of the General Court

Legal Issues

  1. 1 Whether the European Commission committed manifest errors of assessment in approving the Microsoft/Skype concentration under Regulation No 139/2004
  2. 2 Whether the Commission breached its obligation to state reasons under Article 296 TFEU
  3. 3 Whether the applicants had locus standi and legal interest to bring the action

Ratio Decidendi

The General Court found that the Commission did not commit manifest errors of assessment in its analysis of the horizontal and conglomerate effects of the Microsoft/Skype concentration. The Commission's reasoning regarding market shares, network effects, and competitive harm was adequate, and the applicants failed to demonstrate that the concentration would significantly impede effective competition. The Court also held that the Commission fulfilled its obligation to state reasons and that the application was admissible.

Court Disposition

Application dismissed

Orders

  • The application is dismissed in its entirety.
  • Applicants are ordered to pay the costs.