EU's Microsoft ruling draws harsh reaction in US
Wednesday, September 19, 2007
AN EUROPEAN UNION court ruling upholding antitrust sanctions against Microsoft drew a harsh response from the US government and interest groups, which said it may stifle the burgeoning technology sector.
Thomas Barnett, head of the Justice Department's Antitrust Division, said the European Court of First Instance (CFI) in the case against the US software giant may do more harm rather good for consumers.
"Rather than helping consumers, (the decision) may have the unfortunate consequence of harming consumers by chilling innovation and discouraging competition," the US official said in a strong rebuke of the EU action.
Barnett said that in the United States, "the antitrust laws are enforced to protect consumers by protecting competition, not competitors" and that barring "demonstrable consumer harm, all companies, including dominant firms, are encouraged to compete vigorously".
Similar comments were made by technology and other interest groups.
"This decision marks the start of a dark period for (tech) companies large or small with a high degree of uncertainty around the protection of their intellectual property," said Jonathan Zuck, president of the Association for Competitive Technology, an industry group of which Microsoft is a member.
"The precedent will threaten the ability of any successful company to protect its innovations."
Citizens Against Government Waste and the Taxpayers' Alliance, two groups that lobby for limited government, said in a joint statement that the decision "will stifle innovation around the world".
The two groups said the court "apparently believes that real software designers need to be replaced by bureaucrats, who will now be in the business of writing code for computer programs and forcing intellectual property to be given away without adequate compensation".AFP
Thomas Barnett, head of the Justice Department's Antitrust Division, said the European Court of First Instance (CFI) in the case against the US software giant may do more harm rather good for consumers.
"Rather than helping consumers, (the decision) may have the unfortunate consequence of harming consumers by chilling innovation and discouraging competition," the US official said in a strong rebuke of the EU action.
Barnett said that in the United States, "the antitrust laws are enforced to protect consumers by protecting competition, not competitors" and that barring "demonstrable consumer harm, all companies, including dominant firms, are encouraged to compete vigorously".
Similar comments were made by technology and other interest groups.
"This decision marks the start of a dark period for (tech) companies large or small with a high degree of uncertainty around the protection of their intellectual property," said Jonathan Zuck, president of the Association for Competitive Technology, an industry group of which Microsoft is a member.
"The precedent will threaten the ability of any successful company to protect its innovations."
Citizens Against Government Waste and the Taxpayers' Alliance, two groups that lobby for limited government, said in a joint statement that the decision "will stifle innovation around the world".
The two groups said the court "apparently believes that real software designers need to be replaced by bureaucrats, who will now be in the business of writing code for computer programs and forcing intellectual property to be given away without adequate compensation".AFP
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