Government Going Too Far?

The recent spate of government lawsuits targeting industry giants like Microsoft, Phillip Morris and Smith & Wesson has some critics decrying interference with the free market. So the Business Journal asks:

Has regulation of business become too heavy-handed?

Richard Hartnack

Vice Chairman Union Bank of California 

It's generally bad policy to mess with the free market, which has a tremendous number of safety valves. To turn the country upside down because Netscape wanted a more fragmented market strikes me as being highly disingenuous. Consumer protection is not always well-served by the government inserting itself into business, and it can have massively unexpected consequences, like the AT&T breakup. But unpoliced laissez-faire economics can lead to powerful people and companies exploiting individuals. That's when it's time for the government to come in.

Lisa Crane

Chief Executive

Soundbreak.com

I think it depends on the specifics of each case. With Microsoft, I think (government intervention) is a good thing. In the online music world we've got differences with heavyweights like the Recording Industry Association of America. I think the government should be taking a more active role with protecting companies like us from big business. Encouraging competition is always a good thing, and it's very important for the government to be involved with protecting the public health, with regard to the tobacco companies and gun manufacturers.

Philip R. Lieberman

CPA and Manager

Windes & McClaughry Accountancy Corp

Guns and tobacco manufacturers deserve federal interference because these are public health matters. But with Microsoft, it's premature to take dramatic action instead of letting Microsoft fix it and level the playing field. The government should not rule as heavily as it might with an industrial or manufacturing concern like Standard Oil because the new economy is still evolving. As powerful as Microsoft is, it could still be knocked out of the market by some guy with a good idea working out of his garage.

Edmund Einy

Senior Designer

SmithGroup

I think the government had to look into the Microsoft issue, and it's a good thing to monitor the new economy. Technology brings new issues, so Microsoft is kind of a guinea pig as far as how to apply traditional laws. But when states sue companies like tobacco manufacturers, it opens up a whole host of questions. Why don't we sue alcohol companies or auto makers? With those cases, I think the individual has to take some responsibility, because otherwise all companies would he liable for something.

Michael Blaker

Director of Business Development

Powerhouse Electronic Imaging

The government needs to be more careful, and I think it needs to keep its hands off Microsoft. I could understand if there was clearly some negative effect on consumers, but Bill Gates and his products have done us nothing but good. People are suing for everything these days - we have such an irresponsible society. Companies shouldn't hide the fact that they're marketing a lethal product, like the tobacco industry did, But people make their own choices. And guns don't kill, people, people kill people. We've got a lawless society, and it's not the fault of gun manufacturers if people misuse their products.