Economists Agree: Time for Case to End is Now

Today, Citizens for a Sound Economy (CSE) formally released an open letter, signed by 57 U.S. economists, addressed to the nine state attorneys general prosecuting the Microsoft Corporation under federal antitrust laws. The letter urges these attorneys general to accept the proposed settlement reached by Microsoft and the U.S. Justice Department.

Erick Gustafson, CSE Vice President of Federal and State Campaigns, had the following statement:

“While less than perfect, as the undersigned economists recognize, the settlement reached between Microsoft, the Justice Department, and nine states should be the last chapter in this case. Forty-eight months have come and gone since the original complaint was filed. Yet the non-settling state attorneys general, bolstered by the legal and financial support of Microsoft’s rivals, press on, despite their inability to produce any evidence of consumer harm.

“The temerity of the non-settling attorneys general is shocking. The explicit intention of their proposed remedies is to eviscerate Windows and segment the newly created markets for rival software firms. In addition, they wish to throw Microsoft Internet Explorer’s source code into the commons, threatening the very foundations of the proprietary software market.

“Despite its intended use, U.S. antitrust law has proved to be far more effective in reducing competition than reinforcing it. The undersigned economists agree that this would be the outcome if the non-settling states’ remedies were to take effect. To think that the states’ hodge-podge of favors for private interests could meet the ‘public interest’ standard laid out before Judge Colleen Kollar-Kotelly is laughable.”

Erick Gustafson is available for further comment. To schedule an interview, please contact Marty Reiser at (202) 942-7628