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Public Opposes Non-Settling States' $80 Billion Plan, Supports Settlement in Antitrust Case
The public supports the bipartisan settlement between Microsoft and the Department of Justice and nine states, and wants the remaining holdout states to settle, according to two recent surveys.
According to an Americans for Technology Leadership poll, 55 percent of respondents believe the settlement between the DoJ and Microsoft "does about the right amount" while 25 percent believe it actually "goes too far." (Full results at www.techleadership.org). In a separate survey released this week by Ipsos-Reid, 73 percent said the nine holdout states should settle the case with Microsoft.
Those high percentages reflect the public's desire to move on and their concern over the unworkable and harmful plan proposed by the non-settling states.
One of their requirements would force Microsoft to create thousands of versions of Windows, with and without - and in every combination in between - certain vaguely defined "middleware." Microsoft CEO Steve Ballmer compared this to someone saying, "We want the Space Shuttle designed so that any part can be taken out, and it'll still fly, and it'll fly right."
The economic consequences of the states' plan would be devastating as well, according to a study released recently by the Association for Competitive Technology (ACT). The author, University of Texas economist Stan Liebowitz, estimates - conservatively - that it would cost consumers and independent software vendors $80 billion over the next three years. (The study is available at www.actonline.org.)
The bipartisan agreement reached with the Department of Justice and nine states imposes strong restrictions, but is fair and will benefit consumers and the industry. Most important, it will let the economy move forward while preserving Microsoft's ability to compete and to innovate. On Wednesday, Microsoft filed its opinion with the Court clearly outlining why the settlement is in the public interest.
The non-settling states' plan, however, goes well beyond the findings of the Appeals Court and will have drastic consequences for consumers, the industry and the economy. Further, the U.S. government is the proper authority on antitrust matters and the states' plan would override the Justice departments' judgment. Accordingly, Microsoft has asked U.S. District Judge Colleen Kollar-Kotelly to dismiss the non-settling states' lawsuit.
Your participation throughout this case has been invaluable, especially during the Tunney Review, when the DoJ received roughly 10,000 comments - many from FIN members - in support of the settlement. Your input helped shape the revisions to the settlement Microsoft and the DoJ filed last night (http://www.dcd.uscourts.gov/microsoft-2001.html).
However, the radical plan set forth by the non-settling states is a reminder that the threat to consumers and innovation is real. In the coming weeks, it will still be essential to let public officials know how important it is to consumers, businesses, the technology sector and the economy to approve the settlement and move on. You can let them know what you think at the Freedom to Innovate Web site at: http://www.microsoft.com/freedomtoinnovate.
Thank you for taking the time to get involved.
Update on Related Issues
- Microsoft will continue working to resolve the more than 150 private class action lawsuits, filed in the wake of the antitrust case, after a proposed settlement that would have benefited underserved schools was rejected. These suits could come to trial early in the summer.
- AOL Time Warner and Be Inc. both have filed private antitrust lawsuits against Microsoft. No court dates have been established for either of these suits, but we will update FIN members as developments occur.
Again, thank you for your support. Please continue to let your public officials know what you think about this case and other issues that affect the technology sector's ability to innovate for the benefit of consumers and the industry. You can contact them and stay up to date at the Freedom to Innovate Website at http://www.microsoft.com/freedomtoinnovate.
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