Brussels has approved Avaya's billion dollar acquisition of Nortel's enterprise business, paving the way for the deal to close by Christmas.
In a statement, the European Commission said: "The Commission found that the planned transaction would not raise any competition concerns in the overall market for unified communication solutions nor in the narrower markets for PBXs and contact centres."
"Post-merger, the combined entity would continue to face a number of strong and effective competitors giving customers the choice from a range of alternative providers for PBXs and contact centres," it added.
The deal has already cleared regulatory hurdles in the US and Nortel's native Canada.
Avaya has already outlined plans to fold Nortel's reseller partners into its new Avaya Connect programme. This process is currently scheduled to begin in March 2010.