A FINFLASH FROM THE FREEDOM TO INNOVATE NETWORK!
May 7, 2000
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GOVERNMENT?S PROPOSAL WOULD USHER IN ERA OF UNPRECEDENTED REGULATION
On Friday, April 29, the Department of Justice and 17 of the 19 suing
states submitted their proposal for remedies in the Microsoft antitrust
case. Media coverage has focused on the most extreme regulatory
proposition, breakup of the company.
The government plan for breakup would strip Microsoft?s Windows family
of operating system products from the rest of the company, creating a
new "Operating Systems Business." The rest of Microsoft, including the
Office family of products, Visual Studio software development tools,
consumer applications, MSN Internet properties, hardware products like
keyboards, and all joint ventures would make up a new "Applications
Business."
But breakup is only the most radical of the government?s proposals.
Within that scheme are many equally regulatory and damaging proposals.
The government?s paper remedies would mean something very different in
practice, with enormous negative consequences, not just for Microsoft
and the industry, but for consumers.
For a look at "Klein?s Remedies v Consumers? Reality" visit the Freedom
to Innovate Network at
microsoft.com
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WHAT THEY?RE SAYING ABOUT THE MICROSOFT CASE
DR. MILTON FRIEDMAN, Nobel Laureate economist: "Recent events dealing
with the Microsoft suit certainly support the view I expressed a year
ago - that Silicon Valley is suicidal in calling government in to
mediate in the disputes among some of the big companies in the area and
Microsoft. The money that has been spent on legal maneuvers would have
been much more usefully spent on research in technology. The loss of
the time spent in the courts by highly trained and skilled lawyers
could certainly have been spent more fruitfully. Overall, the major
effect has been a decline in the capital value of the computer
industry, Microsoft in particular, but its competitors as well. They
must rue the day that they set this incredible episode in operation."
US Rep. Eddie Bernice Johnson (D-TX): "Our priorities need to focus
more on creating an environment where everyone can participate in the
technology revolution. We don?t need a break-up of Microsoft. We need
adequate training in schools so we have more Bill Gates?."
RAYMOND J. KEATING, Chief Economist, Small Business Survival Committee:
"Of course, the competitive realities of the computer and Internet
marketplaces make this entire case absurd. However, the government's
proposed draconian remedy represents a complete breakdown of economic
common sense and reason. In fact, the company would not only be broken
up, but its product sales and development would be micromanaged by the
government for a number of years through a variety of restrictions."
US REP. BOB GOODLATTE (R-VA):"The idea of breaking up Microsoft is a
mistake that could come back to haunt other participants in this
industry. To go down this road is a mistake." |
