Sorry, but it was entirely government related, and according to CBC I was correct as well. Besides the fact that Skype didn't offer 911 support (see article), it was also used an audio codex that was (at the time) restricted by the government.
http://www.cbc.ca/technology/story/2009/09/08/skype-iphone.html
Yeah I heard about the audio codec listening issue. It doesn't say the government restricted the codec.
And yeah it mentions 911. But since skype still doesn't offer e911 I wonder how they got around that. It seems fishy. Either way its hear and I am glad.