Wednesday, September 19, 2007

ARI Speaks on the EU and Microsoft

In a follow-up to Monday's post on the EU Microsoft ruling, I wanted to point out that The Ayn Rand Insitute today issued two press releases on the topic (which I will link to when they are posted on the web site). In the first, EU Has No Right to Punish Microsoft, Yaron Brook, ARI's director articulated that dominant positions are not threats to free enterprise.

“This ruling violates Microsoft’s right to profit from the enormous popular acceptance of its Windows operating system,” said Dr. Yaron Brook, executive director of the Ayn Rand Institute. “Microsoft cannot force anyone to buy its products. If the company sets prices unreasonably high relative to its customers’ interests, then competitors are free to step in and offer a better value.  But if 95 percent of consumers choose to buy Windows software, then Microsoft has a right to profit from that success and not be punished for it.”

In the 2nd, End, Don’t Extend, the Persecution of Microsoft, Alex Epstein identifies Microsoft's persectution rightfully as persecution of the good for being such,

“Of course, Microsoft’s tremendous success is the whole reason it ever fell under antitrust prosecution in the first place. Antitrust law regards any company that has earned substantial market share as a dangerous ‘monopolist.’ Microsoft has suffered almost two decades of government threats and punishment on the grounds that its 90 percent plus market share in operating systems was a ‘threat’ to the consumers who eagerly chose Microsoft Windows over the competition. Microsoft used no force or fraud against anyone; its ‘crime’ was to choose to add a valuable feature, a Web browser, to its popular operating system.

Great articles both!

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