The EU on Friday approved Microsoft's $8.5 billion purchase of internet voice and video service Skype.
The European Commission said that its investigation of the takeover showed that the firms' activities mainly overlapped for video communications, where Microsoft is active through its Windows Live Messenger.
"However, the Commission considers that there are no competition concerns in this growing market where numerous players, including Google, are present," it said in a statement.
"This is an important milestone, as we've now received clearance from both the United States and the European Union. 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," Microsoft said in a statement.
The U.S. Federal Trade Commission has also cleared the deal.