(Washington, D.C.) – Citizens Against Government Waste (CAGW) today applauded the decision by the U.S. Court of Appeals for the District of Columbia approving, without modification, the antitrust settlement agreed upon by U.S. Department of Justice, 17 states and the District of Columbia, and the Microsoft Corporation.  Massachusetts was the only state that appealed in hopes of a harsher punishment against the computer company.

“The U.S. Court of Appeals decision brings to an end a six-year ordeal for taxpayers, consumers and the technology industry.  After spending more than $35 million in public funds, the Microsoft litigation is over,” CAGW President Tom Schatz said.  “A unanimous appeals court said, ‘we affirm the district court’s remedial decree in its entirety.’  There’s no room for misinterpretation or basis for a further appeal to the Supreme Court.”

The decision is also a setback for the Computer Communications Industry Association, and the Software and Information Industry Association, associations composed of Microsoft competitors that intervened in the appeals process and questioned the public interest determination by the district court.  However, the appeals court found no merit to their objections.

Unless Massachusetts Attorney General Tom Reilly has completely lost his mind and appeals to the Supreme Court, the state’s taxpayers will finally be relieved of a substantial financial burden.  In fiscal year 2003, Massachusetts had a budget deficit of $547 million.  It is projected to be nearly $2 billion this year.  “Without a guarantee that the legal costs would be reimbursed, Attorney General Reilly risked a large amount of tax dollars, which he would not initially disclose, to carry on a fight no one else agreed with,” Schatz continued.  “Meanwhile, the people of Massachusetts have had to face cuts in services as a result of the budget deficits.”

In January 2002, CAGW filed Freedom of Information Act (FOIA) requests with the nine states and the District of Columbia that were pursing the case at the time to determine the costs of the litigation.  In response, a letter from Attorney General Reilly’s office stated that a search would be conducted of related records and CAGW would later be notified of the results.  To date, CAGW has not received such information.  However, when announcing that Massachusetts would appeal the settlement last November, Mr. Reilly state that the state would seek reimbursement from Microsoft for more than $700,000 in expenses in the case.  Since Massachusetts lost its appeal, Microsoft is unlikely to help cover the state’s cost as it did when the company settled with the other states.

“The Court of Appeals decision also sends a signal to the European Commission and the European courts that the consent decree should be respected around the world,” Schatz concluded.  “Hopefully, today’s decision brings closure to this issue, and allows the technology sector to focus on new, innovative products and services.  It is a major victory for consumers, taxpayers and the technology marketplace.”

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