Skype and Fring war over phone system apps

The news this week has been full of the griping between Skype and Fring. Essentially Fring created a video calling phone system app to replace Facetime on the iPhone and then got angry when Skype blocked it. Fring creates a variety of VoIP features including cross platform video calling.
The techjournal.com talked about a 'blog war of words'. It said that a "surge in demand that followed the availability of the Fring iOS 4 app, the company’s network was unable to cope. So Skype users trying to access the service using the Skype API were temporarily blocked while it addressed the issue."
Israel's Business Arena Globes reported that Fring has been forced to stop its Skype interconnectivity following a threat of legal action. Skype's lawyers were called into action after "Fring launched mobile video calling on iPhone 4."
Skype denied Fring's claims that an anti-competitive ambush had taken place and said that Fring was using Skype's software in a way that it should not have.