For Immediate Release Contact: Jim Campi
April 28, 2000 (202) 467-5300


WASHINGTON, D.C. -- Citizens Against Government Waste President Thomas Schatz today reacted to press reports that the Department of Justice (DOJ) and state attorneys general pursuing antitrust litigation against the Microsoft Corporation will seek to have the software manufacturer split into two separate companies.  Following are Schatz's remarks:

"Like Solomon offering two mothers each half of a child, the Justice Department has offered a solution that is unworkable and counterproductive.  Unfortunately, the subtle wisdom of that ancient king is absent from the Justice Department's desire to tear asunder one of the most prodigious offspring of the Information Age.

"Splitting Microsoft into two companies, one for operating systems and one for applications software, is an obvious ploy to give government more control of the vibrant high tech sector of America's economy.  DOJ's plan to put the proposed operating system company under intense federal scrutiny for three years exposes their design to create regulation through litigation.

"The government has already spent millions of dollars prosecuting Microsoft, and all they have to show for their 'success' is the volatility of a stock market and economy increasingly dependent on innovative companies like Microsoft.  To punish Microsoft for innovating bigger and better than anyone else in the industry can only harm consumers, taxpayers, and every American who currently enjoys the blessings of America's prosperity."

CAGW is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.



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