European Regulators to Impose Punitive “Euro-Tax” on Microsoft

Citizens for a Sound Economy (CSE) today blasted the European Union for its plan to impose a record $613 million fine against Microsoft. According to press reports, the European Commission is set to announce a series of radical remedies, which will include this huge fine along with an unprecedented level of regulation over the American company’s ability to design its own products.

“This fine, which is the largest ever levied by the EU, should be seen as nothing less than a punitive technology tax on an American company that will harm the tech industry and our economy,” said CSE President Paul Beckner. “At a time when we are trying to encourage a global economic recovery, the last thing we need is the imposition of such a punitive tax by European regulators. As with so many tax and regulatory schemes, the ones who ultimately pay the price are consumers.”

“It is interesting to note that the largest fine until now was against the European drug company – Roche Holding AG – that had been fixing drug prices for over 20 years,” Paul Beckner said. “It is outrageous that the fine against Microsoft, an American company whose actions are still unproven by the European courts, is the largest fine ever. Microsoft’s actions all involve innovation of their products. It’s hard to see this as anything but a punitive attack on a successful American company.”

“Besides the size of this Euro-tax, this entire set of remedies should disturb anyone concerned about the future of the economy,” Beckner added. “According to the penalties that have been reported, the European Commission has effectively turned itself into a software designer, telling companies what they can and cannot put into their own products. The technology industry and consumers are the ones who should be deciding what software should look like, not government bureaucrats making up the rules as they go.”

“We thought this type of destructive industrial policy had seen its last days, but unfortunately EU regulators have given it new life,” Paul Beckner concluded. “Now consumers and the economy will pay the price.”

Paul Beckner is available for further media comment at (202) 783-3870.