I’m sure there are lots of businesses, entrepreneurs and consumers in Europe looking forward to Microsoft Corp.’s new operating system Vista. Well, the message to them from European regulators seems to be: “Tough luck, you just might have to wait longer.”
In a Dow Jones story from September 7, reporter William Echikson writes: “Microsoft Corp. said it is awaiting a response from European regulators to determine whether the next-generation Vista operating system will be delayed in Europe.” He later adds: “Microsoft said it has provided regulators with ‘extensive briefings’ on Vista over the past 15 months and given regulators copies of the product to review. The Commission has raised various concerns, noting complaints made by competitors, the statement said.”
Hmmm, note that the complaints come from competitors, not consumers. Of course, that’s how it usually goes with antitrust regulation – whether here in the U.S. or elsewhere, as in Europe. It’s supposed to be about helping consumers, but it turns out to be about government providing aid and protection to companies that face a tough time or are losing out in the competitive marketplace.
Ironically, EU spokesman Jonathan Todd was quoted declaring: “There is no reason why Microsoft cannot market Vista in a way that is fully compliant with competition regulations.” Was that “competition regulations”? How’s that for an oxymoron?
But at least not all government officials in Europe are lost causes on such matters. The Dow Jones story noted: “Earlier Thursday, four European parliamentarians criticized European regulators for their handling of an antitrust investigation into Microsoft, saying it could result in delays of the release of the company's software in Europe. In a letter addressed to European Antitrust Commissioner Neelie Kroes, the four members of the European Parliament -- three from the U.K. and one from Poland -- complained that the regulators' ongoing pursuit of Microsoft has led to ‘uncertainty about the legal principles that govern product design issues for future releases of Microsoft products in Europe.’” Indeed, it not only creates uncertainty for Microsoft, but for any company that gains significant market share by serving consumers well.
The regulatory mess in the U.S., including on the antitrust front, entangles far too many businesses, and is far too costly. Microsoft certainly has seen that firsthand over the past decade-and-a-half. But Europe is even worse, as the company faces enormous fines, court costs and judicial appeals.
This EU antitrust case should be instructive to policymakers in the U.S. on two fronts. First, if our nation journeys farther down the path towards European-style regulation, businesses, entrepreneurs and consumers will suffer. Second, as more and more U.S. businesses expand globally, they could face protectionism through government regulation.
Raymond J. Keating
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