Washington, DC, June 7, 2000 – Today’s Microsoft verdict represents an unjustified assault [2] on the information revolution and the welfare of consumers, in favor of rule by politicians, the bureaucracy and lawyers. We are confident that the appeals court will reverse it. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

No conceivable market process would have created the mutant Microsoft sub-companies ordered by the judge’s verdict. There is no role for such hobbled, handicapped, useless entities in the computer marketplace. Further, the conduct restraints thrown on top of the mix make this literally a disintegration of the company, not just a breakup.

This verdict, if upheld, heralds not just the breakup of Microsoft, but quite likely the breakup and demise of the idea that the Internet’s evolution remain relatively free of government second-guessing. Woe to the computer, communications and software industries, especially those participants that become “too big” and that “stifle innovation.” And shame on those claiming to represent technology industry interests who lobbied for this new breed of industrial policy for short-term competitive advantage.  

For further comment, please contact:

Wayne Crews

Director of Competition and Regulation Policy

202-331-1010, ext. 204

703-237-1227 (evening)

CEI, a non-profit, non-partisan public policy group founded in 1984, is dedicated to the principles of free enterprise and limited government. For more information, please contact Emily McGee, director of media relations, at emcgee@cei.org [3] or 202-331-1010, ext. 209.