Failure to Settle Microsoft Case Shows EU ready to shun innovation

(Washington, D.C.) – Citizens Against Government Waste (CAGW) today expressed frustration over the conclusion of settlement negotiations between Microsoft Corporation and the European Commission.  The failure to reach in an agreement in the antitrust case will result to a ruling against Microsoft by the Commission next week, leading to uncertainty in the global technology industry during a lengthy appeals process

“The failure to reach a negotiated settlement is a setback for technology and innovation across Europe and will also reverberate around the world,” CAGW President Tom Schatz said.  “In the United States, the courts did not set the same overbearing restrictions on future technology contemplated by the Commission.  The Commission’s proposed decision contradicts what happened in the U.S. and will set back technology across all of Europe.”

The European Commission began antitrust investigations against Microsoft in 1999.  It contended that by including its Windows Media Player with its operating system, Microsoft had an advantage over other manufacturers of media players.  The Commission also claimed Microsoft did not disclose enough technical data about its operating systems that would allow competitors to manufacture compatible programs.

“The Commission was asking Microsoft to give up too many of its rights to its intellectual property, which would set a dangerous precedent and hinder further growth,” Schatz continued.  “Furthermore, the Commission wants to regulate future developments in the industry.  In essence, it wants to put the cart before the horse.  Microsoft was right not to agree to such a compromise.  The last thing consumers and technology companies need is the government designing software.  Free-market competition may be a tough business, but innovation, not litigation, benefits society most in the long run.”

CAGW tracked the antitrust case in the United States and monitored the $35 million cost to taxpayers.  It works closely with taxpayer groups in Europe such as Contribuables Associés in France and The Taxpayer Alliance in England.

“As the rest of the world continues to grow technologically, Europe will lag behind if it does not change its mindset,” Schatz concluded.  “The technology industry seems to be doing just fine following the settlement of the Microsoft case in the U.S.  The European Commission should not be trying to undo that agreement and control the future.”

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.