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BREAKING-UP GETS HARDER TO DO
By Kristin Mouk
On June 7, U.S. District Judge Thomas Penfield Jackson for the District of Columbia handed down a decision to split Microsoft into two separate companies. Microsoft immediately announced it plans to appeal the decision. "Today is the start of a new phase of this case, a phase where we'll get review by a higher court," said Microsoft chairman Bill Gates in a press conference responding to the ruling. "We're confident that the courts will overturn what's happened at the district level, and as the legal teamwork resolves this, we're going to focus our energy on building great software for all our customers." The case began May 18, 1998 when the United States filed a formal complaint against Microsoft, charging the company with unlawfully maintaining a monopoly in desktop operating systems in violation of Sections 1 and 2 of the Sherman Act. Section 1 deems illegal the purposeful restraint of trade or commerce. Section 2 establishes the monopolizing of trade or commerce as a felony. Concerned business organizations are protesting the decision, which they consider an abuse of antitrust laws. Moments after the decision was announced, the National Taxpayers Union (NTU) began an independent campaign in Congress to "curb antitrust abuse." Elements of the campaign include a review of current law and a recommendation for change, a summit on antitrust laws by members of the legal community, a grassroots education campaign on the dangers of courtroom forays into free-market competition and formation of a Congressional antitrust reform caucus that will draft and promote legislation. NTU, which was founded by James Dale Davidson in 1969, is one of the largest and oldest citizen taxpayer groups. The grassroots organization lobbies Congress and State legislatures for lower taxes, reducing wasteful and inefficient government spending, reducing bureaucracy and reducing regulation at all levels of government. "The courtroom battle against Microsoft is likely to drag on for months, but the government's reckless war against successful companies on behalf of disgruntled competitors could go on for years," said NTU President John Berthoud. "Only Congress can bring this regulatory rampage to end, by revamping the nation's antitrust laws to ensure that they serve consumers, rather than competitors, in the future." A NTU research study suggests the case has hurt Microsoft stockowners as well as the company, estimating losses around $80 billion after April 3's "Finding of Law." The study, entitled "The Visible Hand," has connected the loss to April 14's 349-point drop in the tech-heavy Nasdaq. The American Conservative Union (ACU) has also voiced its opinion of the "anti-business" decision. "Microsoft is an American success story built on a thriving computer marketplace," said ACU chairman David Keene. "With this decision, Judge Jackson has proven that by his reasoning, success in the 21st century will be rewarded by intrusive government regulation from the heavy-handed attorneys within the Clinton/Gore Justice Department." ACU is the nation's oldest conservative lobbying organization. Its "Statement of Principles" maintains the group's support of capitalism, its belief in the doctrine of the original intent of the framers of the Constitution, its confidence in traditional moral values and its commitment to a strong national defense. "We have been taught to believe that if you're first to market with a good idea, you can achieve financial success," said Keene, in conclusion. "Unfortunately, this decision will cast a chilling effect on the kind of creativity and innovation that has driven entrepreneurship to develop new products and services that put America at the forefront of the world economy." On June 20, Judge Jackson granted the Justice Department's request to skip appeals court and be sent directly to the Supreme Court and ignored Microsoft's argument that the appeals court is the "proper venue" for the case. The Supreme Court may still send the case back to the U.S. Court of Appeals for the District of Columbia for further review. For more information, please visit the following web sites: Microsoft PressPass
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