CAGW Denounces Latest EU Complaint Against Microsoft
Press Release
| For Immediate Release | Contact: Daytime: Jessica Shoemaker (202) 467-5318 |
| March 3, 2006 | After hours: Tom Finnigan 202-253-3852 |
(Washington, D.C.) – Citizens Against Government Waste (CAGW) today denounced a new antitrust complaint filed against Microsoft with the European Commission. The complaint demands that the restrictions placed on Microsoft in a 2004 antitrust ruling be enforced expeditiously and makes new charges of alleged “anti-competitive” practices by the company.
“Microsoft’s competitors are exploiting the legal system in an attempt to create an advantage,” CAGW President Tom Schatz said. “Instead of innovating and competing, these companies will bully Microsoft for as long as the EU lets them.”
The European Committee for Interoperable Systems (ECIS), an alliance of Microsoft’s rivals, now allege that Microsoft Office’s inoperability with other platforms precludes competition with the Windows operating system. The 2004 ruling revolved around Microsoft bundling its Media Player with the operating system. Microsoft was forced to hand over valuable intellectual property to competitors, create a second “unbundled” version of Windows, and pay a record $613 million fine. As Microsoft predicted, the unbundled version of Windows actually made the rival players less functional.
Microsoft has appealed the 2004 decision but must comply in the meantime. In December 2005, the European Union’s executive began proceedings to fine Microsoft $2.4 million per day for allegedly not complying. On March 2, Microsoft argued that the EC has withheld documents that could support the company’s case.
“The EC’s biased handling of the case will have global ramifications for the economy and for taxpayers,” Schatz said. “The threat of strict penalties, forfeiture of intellectual property, and the need to alter products based on where they are sold could severely hamper innovation and international trade.”
Citizens Against Government Waste is the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.