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PRESS RELEASE FROM AMERICANS FOR TAX REFORM
Contact: John Kartch ( jkartch@atr.org or 202-785-0266)

4/3/00

TAXPAYERS PRAISE MICROSOFT FOR REFUSING TO SELL OUT TO GOVERNMENT LITIGATORS

Consumers best served by a competitive market,
not government regulators and litigators

WASHINGTON, DC -- Citing the benefits consumers continue to enjoy from a competitive computer marketplace, Americans for Tax Reform today praised Microsoft Corp. for refusing to acceded to the demands of state attorneys general during settlement talks in the anti-trust case.

"Who knows how to best meet the needs of consumers, private sector innovators, or government bureaucrats," asked Ron Nehring, Director of National Campaigns for Americans for Tax Reform. "Many of us who value a competitive market that benefits consumers were concerned that the government bureaucrats attacking Microsoft might get a settlement that would set the dangerous precedent that Janet Reno knows best when it comes to technology. Microsoft held firm, and that's good news for consumers and businesses alike."

Nehring cited other reasons Americans for Tax Reform opposes the Clinton Administration's war on Microsoft:

Consumers are benefitting from a vigorously competitive marketplace in computer software and hardware. Microsoft has not acted like a monopoly. It has not restricted the flow of products to market or increased prices. To the contrary, prices continue to fall across hardware and software product categories. "Remember, the government took action against Microsoft because it chose to give away its browser software, while other companies were charging for similar products. The next thing you know, the Justice Department will start complaining the next time Macy's holds a sale."

Technology and the marketplace have made the government's case obsolete. The original impetus for the case was to salvage Netscape's Web browser software. Since then, Netscape merged with America Online and formed a partnership with Sun Microsystems, which is now giving away a full office suite package, StarOffice, to compete with Microsoft's Office software. Other developments are connecting an increasing number of users to the Internet through "post-PC" devices such as digitical, Internet-capable cell phones, where browser software is not an issue.

State attorneys general are using the Microsoft case to advance serve their political ambitions. In mediation talks, state attorneys general were even more radical in their approach than the Clinton Justice Department. "For the AG's, this is overwhelmingly political. The more punitive the settlement, the bigger the headlines for these 'A'spiring 'Governors."

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Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose any and all federal and state tax increases.  For more information, or to arrange an interview with Mr. Norquist please contact John Kartch at (202)785-0266 or by email at jkartch@atr.org.