Judge Thomas Penfield Jackson's decision Friday sets a troubling precedent for government intervention into the development of high technology. The ruling impacts far more than just one Northwest company. It holds larger policy implications for the emerging high technology economy that threaten the very creativity and innovation that has made American computer software the best in the world.

"For the first time, the federal government is poised to pick winners and losers in the nation's most dynamic, fastest-moving industry. In effect, government intrusion will punish Microsoft for succeeding in the marketplace by providing consumers with what they want at an affordable price," said Foundation President Richard Derham.

More broadly, Judge Jackson's ruling threatens to stifle an entire new economic sector in its infancy, just as the United States embarks on what promises to be a second American Century. "The Justice Department will certainly continue its battle against Microsoft. What's essential for Americans, however, is that the software industry as a whole is allowed the freedom to meet consumers' needs with inventiveness, enterprise and originality," said Vice President for Research, Paul Guppy.

Microsoft's competitors are no doubt gleeful over a court decision that will likely result in direct short-term profits to them. But as federal regulations tighten around their industry in the years ahead, they may one day regret inviting the world's most powerful government to arbitrate marketplace disputes within their industry.