“Now let technology’s future be determined by the marketplace,” says Schatz

(Washington, D.C.) – Citizens Against Government Waste (CAGW) applauded today the long awaited decision by Judge Collen Kollar-Kotelly on the settlement agreement between Microsoft Corporation and the federal government and nine states.  Her ruling let stand a vast majority of the provisions included in the settlement, while largely rejecting the contention by nine other states that the settlement was inadequate.

“Now it is time to move the fight for the future of technology out of the courtroom and back into the marketplace,” CAGW President Tom Schatz said.  “In these times of state and federal budget deficits and the war on terrorism, not one more tax dollar should be spent on this case.”

Kollar-Kotelly’s ruling comes more than four months after closing arguments in an eight-week trial, which featured the testimony of Microsoft Chairman Bill Gates.  A Washington, D.C., appeals court last year overturned another judge's order to break up Microsoft.  But it upheld findings that the company illegally protected its Windows operating system monopoly and ordered Judge Kollar-Kotelly to come up with new penalties.  She has been weighing a settlement reached with Microsoft by the Justice Department and nine states against tougher sanctions proposed by nine other states,

“This decision leaves room for final negotiations and agreement among the remaining litigants without additional appeals,” Schatz added.  “This case, which was brought for the sake of Microsoft’s competitors, not taxpayers and consumers, has proven a huge waste of time and money and should conclude now.”

CAGW has repeatedly asked for information regarding the states' expenditures in the case by filing Freedom of Information Act requests with the attorneys general, most recently in January 2002.  The states have either denied the requests or provided incomplete responses.  As a result of the lack of response from the states CAGW estimated the cost of the trial based on information collected from other leading litigation firms in Washington.  The analysis reveals that each day in court costs at least $30,000.  Once pretrial preparation, estimated at $250,000, is factored in the total cost at the end of closing arguments will be $1,420,000.  This figure does not include the hours and money spent preparing for closing arguments and final briefs that totaled around 500 pages, burned onto CD-ROM.

“Since the NASDAQ’s high two years ago, technology companies have been decimated by markets,” Schatz concluded.  “Instead of harassing our remaining high tech businesses, the government should get out of the way and let the market do its work.”  

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.