Taxpayer Group Blasts California Governor Davis for Continuing Microsoft Case | Citizens Against Government Waste

Taxpayer Group Blasts California Governor Davis for Continuing Microsoft Case

Press Release

For Immediate ReleaseContact:  Sean Rushton or Melissa Naudin
November 6, 2001(202) 467-5300

 

The fat lady has sung herself hoarse, but he isn't listening.

Washington, D.C. - Citizens Against Government Waste (CAGW) today blasted California Governor Gray Davis for declining to join with most other states and the U.S. Department of Justice in settling the long-running Microsoft antitrust case.

"The economy is sinking, the technology sector is in trouble, the nation is at war, yet some are continuing their vendetta against a leader of the new economy," CAGW President Tom Schatz said.  "The Microsoft litigation's complete settlement would benefit both consumers and taxpayers by bringing certainty to the marketplace and encouraging new investment in technology.  Most importantly, closure in this case would free up crucial legal and financial resources for the nation's war against terrorism." 

"For those states that have made the sensible decision to settle this case, CAGW and its one million members and supporters nationwide applaud their common sense and care for tax dollars," Schatz added.  "After spending more than $35 million to date at the federal and state level, citizens are right to be angry at those government officials who persist in pursuing Microsoft.  Working families have watched their portfolios nosedive since the district court's decision last June, and know that a settlement would be good for the economy.  CAGW's 120,000 California members and supporters are outraged." 

"The Department of Justice and most of the states can read the writing on the wall.  Why can't Gray Davis?," Schatz also said.  "The states that remain in this case appear more concerned about Microsoft's competitor's welfare than that of their own consumers and taxpayers."

"California, which just last month hired a separate high-priced Washington lawyer for the states, and substantially increased funds for antitrust activities in the technology sector, is now faced with "credible threats" of terrorism against its people and transportation system," Schatz said.  "Furthermore, state budget planners are now projecting a budget shortfall next year of $8 billion to $14 billion.  This endless Microsoft litigation, wasteful at the best of times, is now a completely inappropriate and irresponsible diversion of vital government resources."

“Pursuit of this matter is especially wasteful since the same judge that would approve the settlement between DOJ and Microsoft is presiding over the state litigation.  There is little chance that she would come up with a dramatically different conclusion next year, since separate remedies would be unworkable for Microsoft and the entire technology sector.  CAGW hopes Gray Davis recognizes the futility of his action, which may serve some unknown political goal, but no practical purpose,” Schatz concluded.

CAGW is the nation's largest taxpayer advocacy group with over one million members and supporters nationwide.  It is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.