Open Source, Closed Markets

Friday, April 13, 2007
John Berthoud of the National Taxpayers Union has a piece in today’s Washington Examiner about the battle between Microsoft and the European Commission. Berthoud writes that it is part of a larger “anti-American” program, and “another example of old-guard European protectionism.”

Berthoud writes, “The EC’s actions against Microsoft are not isolated. It has acted against other American businesses as well. For instance, in 2001 the EC blocked General Electric’s planned acquisition of Honeywell. Assistant U.S. Attorney General Charles A. James said at the time that the EC’s decision ‘reflects a significant point of diversion’ with U.S. American antitrust regulators.”

It’s true that Microsoft isn’t the only target, although it is the one of the biggest and perhaps the most significant in the digital realm. It seems that any American company that successfully innovates and offers a valuable product can be threatened by EU regulators. The Commission has launched an investigation against Apple for potential violations of EU law, by selling music for different prices in different countries.

Berthoud gives the following advice to the EU, “Rather than try to stifle American innovation, perhaps Europe should focus more on encouraging homegrown entrepreneurial advances to vie with U.S companies.”

But it seems pretty clear that in the case of operating systems and software, the EU has chosen its horse to favor: open source. Next week we’ll examine some of the claims of superiority that might be influencing the EU’s adoption of open source software.
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