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  Microsoft witness: Innovation hurt by fix
Time: 13:57 EST/18:57 GMT | News Source: CNET | Posted By: Alex Harris

An economist testifying on behalf of Microsoft on Wednesday said the strict antitrust sanctions sought by nine states against the company would be harmful to consumers. University of Virginia economics professor Kenneth Elzinga said the states' proposed sanctions would cripple the Windows operating system, raise costs, and reduce Microsoft's incentive to improve its products. "To me, it is plain that the non-settling states' proposal would harm consumers," Elzinga said in written testimony to U.S. District Judge Colleen Kollar-Kotelly.

Elzinga also told the judge that the states' sanctions are legally flawed because they "seek to impose a regulatory regime" on Microsoft software that has nothing to do with the antitrust violations the company committed. Elzinga endorsed the settlement that Microsoft reached in November with the Justice Department and nine other states, which is designed to allow computer makers to feature more non-Microsoft software on the machines they sell.

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