Statements on the Microsoft Appeals Court Decision

James L. Gattuso<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

Vice President for Policy

Competitive Enterprise Institute

“Today’s decision by the D.C. Circuit Court of Appeals was a clear, but qualified, victory for consumers.  Judge Jackson’s decision, had it been allowed to stand in full, would have sent a message to firms nationwide:  don’t innovate too much, don’t compete too hard.  Today’s action overturning much of that original decision is a step in the right direction.

“However, the lawyers are not going home yet, many issues were remanded to trial court for more proceedings.  The litigation will go on.  Instead of pursuing this further action, the government should settle this case as soon as possible – and let the future of the Internet be determined by consumers, not by litigation.”

James V. DeLong

Senior Fellow, Project on Technology & Innovation

Competitive Enterprise Institute

“Overall, the court's decision in the Microsoft case is a victory for the company and the high tech industry as a whole.  In rejecting Judge Jackson's quick-trigger-finger decision to break up Microsoft, the appeals court emphasized that the remedy of a break up should be a rare a beast in antitrust, and that the usual response should be an injunction against illegal conduct, not vivisection without benefit of anesthetic.  Today's decision is a win for the entire industry because it says courts should not meddle at random with business structure.”

James Gattuso is Vice President for Policy and Management at the Competitive Enterprise Institute. He previously served as Deputy Chief of the Office of Plans and Policy at the Federal Communications Commission, Associate Director of the President's Council on Competitiveness, and an antitrust attorney in private practice.

James DeLong is a Senior Fellow at the Competitive Enterprise Institute.  He was formerly Vice President and General Counsel of the National Legal Center for the Public Interest and a graduate of Harvard Law School.

Mr. Gattuso and Mr. DeLong are available for further comment and interviews on the Microsoft verdict.  Please call the media relations department at 202-331-1010 or 703-899-4382.