Statement by the Pacific Research Institute’s Sonia Arrison on the Court of First Instance’s Ruling on the Microsoft Case
PRI Press Release
9.17.2007
 For Immediate Release: September 17, 2007
European Decision is a Bad Sign for Consumers and American Technology Firms Micromanaging Microsoft
San Francisco – The ruling by Europe’s Court of First Instance in favor of the European Commission’s decision that Microsoft has abused its market power will involve costly fines and regulations for Microsoft and sets a dangerous precedent for American technology firms and consumers, said Sonia Arrison, Senior Fellow in Technology Studies at the Pacific Research Institute.
“Microsoft’s competitors didn’t like the results they got from the American antitrust system, so they took their claims to Europe where a different culture prevails," said Ms. Arrison. "This is a problem because a culture of government regulation and micromanagement is not the best for fostering innovation, productivity, and of course jobs.”
“All technology companies with significant market power should now be worried, especially if they rely on intellectual property for their business. Microsoft had agreed to license their technology to competitors, but European regulators claimed the price they were asking was too high,” said Ms. Arrison. “When regulators get to determine the prices of a firm’s goods, property rights and all the societal benefits that derive from them are lost. Which company will be targeted next is anybody’s guess, but if I were an executive at Intel, Google or Apple, I’d be more than a little worried.”
A Set Back for Consumers
“Consumers should also be upset with this ruling, as it chills innovation and threatens to make the computing experience more complex for the average person. The European Commission clearly has a problem with Microsoft integrating new features into Windows,” said Ms. Arrison. “They forced Microsoft to sell Windows without Media Player, but almost no one bought it. Yet, regulators still say with a straight face that bundling is bad for consumers. As someone who was in Luxembourg last year watching the testimony on this issue, it is shocking to see that today the court sided with the EC. Consumers want their experience to be seamless, but that clearly doesn’t sit well with the European mind-set."
### | Contact: | To set up an interview with Sonia Arrison, please contact PRI’s press office at 415/955-6120 or email smartin@pacificresearch.org |
About PRI
For 28 years, the Pacific Research Institute (PRI) has championed freedom, opportunity, and individual responsibility through free-market policy solutions. PRI is a non-profit, non-partisan organization. www.pacificresearch.org.
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