TAXPAYER WATCHDOG GROUP CONDEMNS FEDERAL GOVERNMENT’S FAILURE TO SETTLE MICROSOFT SUIT | Citizens Against Government Waste

TAXPAYER WATCHDOG GROUP CONDEMNS FEDERAL GOVERNMENT’S FAILURE TO SETTLE MICROSOFT SUIT

Press Release

For Immediate ReleaseContact:  Jim Campi or Aaron Taylor
April 3, 2000(202) 467-5300

 

(Washington, D.C.) – Citizens Against Government Waste (CAGW) President Thomas A. Schatz today reacted to the government's failure to settle its antitrust suit with the Microsoft Corporation out of court.  Following is Schatz's statement.

"The refusal of the Department of Justice (DOJ) and state attorneys general (AG) to accept the settlement offer from Microsoft is the latest example of the government’s presumed technological wizardry.  But looking behind the curtain reveals that the government continues to misunderstand the high tech industry, and is more interested in scoring political points than in settling the case.

"The state AGs in particular continue to bluster and blather even though Microsoft has dramatically moved toward the government’s position on changing its business practices.  At the same time, the company has refused to allow the government to give away its constitutionally protected intellectual property.  That decision is consistent with court cases that state the government has no business designing software.

"The AGs in Florida, Maryland, Kansas and Ohio have realized that a break up is not the appropriate remedy.  Yet their fellow AGs appear to be holding out for such a remedy, instead of agreeing to a settlement now.  It is not clear whether these grandstanding hard liners are out to gouge a successful company at all costs, or whether they are simply technologically ignorant, or both.

"Taxpayers have been stuck with a bill of more than $30 million at the federal level and at least $2 million at the state level for this lengthy case.  Prolonging the matter into the future would not only cost more, it could lead to the government deciding what consumers can see on their computer screens.  Once the government has its foot in the door on this type of technological decision, it could threaten future entrepreneurs, who would wonder how big they would need to be before the government would step in, and destroy the nation’s technological leadership around the world.

"The public and investors on Wall Street have spoken: Being the great and powerful government should not prevent a reasonable settlement of the Microsoft case."

CAGW is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.