Washington, D.C. - Citizens Against Government Waste (CAGW) and the TaxPayers’ Alliance (TPA) today reacted with dismay at the European Court of First Instance (CFI) ruling on the Microsoft antitrust case, calling it a decision that will stifle innovation around the world.

CAGW President Tom Schatz and TPA Chief Executive Matthew Elliott released the following joint statement:

With this misguided ruling, the CFI has officially opened the floodgates for a tsunami of lawsuits and stultifying government micromanagement that will significantly hinder the ability of all technology companies to innovate and deliver the most cutting-edge technology available to consumers.  The CFI apparently believes that real software designers need to be replaced by bureaucrats, who will now be in the business of writing code for computer programs and forcing intellectual property to be given away without adequate compensation.

The decision will force Microsoft to share some of its trade secrets with competitors, and is unfortunately the first in a series of court cases that will adversely affect companies such as Intel, Apple, and others already subject to the oppressive regime of litigation and regulation in Europe.  The EC’s decision to force Microsoft to provide an operating system without its media player has already been rejected by consumers, as there was virtually no demand for XP-N, the EC-designed operating system.  By supporting the EC’s software blueprint, the CFI is not helping consumers; it is harming them by forcing them to accept a product they do not want.  The marketplace is the best venue for these issues to be resolved.  Regulation by litigation hurts taxpayers, stifles innovation, creates trade barriers, and harms intellectual property rights.

Citizens Against Government Waste, based in Washington, D.C., is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.  The TaxPayers’ Alliance, based in London, campaigns for lower taxes and better government.