Rajiv Chandrasekaran: Microsoft Lobby Weighs In

[James Love <love@cptech.org>]

http://washingtonpost.com/wp-srv/business/feed/a51114-1999nov11.htm

Microsoft Lobby Weighs In
Rajiv Chandrasekaran
November 11, 1999

 
    
   Thursday, November 11, 1999; Page E01 

 On Friday evening, just minutes after a federal judge declared
Microsoft Corp. an out-of-control monopolist that has smothered
innovation and stifled competition, the software giant's newfound allies
on Capitol Hill kicked into high gear.

   [snip]

Jack Krumholtz, Microsoft's government affairs manager, called the
flurry of pro-Microsoft statements from Capitol Hill on Friday "a
validation of our efforts."

"I think we've really made some headway here," Krumholtz said. "I think
we've been smart about how we've done it, how we've approached this
Washington."

In the first nine months of the year, Microsoft and its employees made
nearly $800,000 in political contributions, almost six times what the
company spent in the same period during the last election cycle,
according to the Center for Responsive Politics, a nonpartisan research
group. The firm has given $331,000 in soft money this year, almost all
to Republicans.

Microsoft--which almost doubled its lobbying spending last year, to $3.7
million--also has retained some of Washington's top political
consultants, among them former Republican National Committee chairman
Haley Barbour, anti-tax activist Grover Norquist, former representatives
Vin Weber (R-Minn.) and Tom Downey (D-N.Y.), as well as two former Armey
aides. Although Microsoft's lobbying has had little effect on the
government's antitrust case thus far, the company is hoping that a
chorus of congressional support for its position will pressure the
Justice Department and state attorneys general to shy away from asking
for stiff "remedies" when the proceedings likely enter a sanctions phase
next year. Over the longer run, Microsoft could appeal to Congress to
provide legislative protection if it loses in court. The firm also is
hoping that its influence will convince the attorney general in the next
administration to drop or scale back the case.


   [snip]

Many of the company's supporters, who emphasize their positions are the
result of long-standing personal opinions and not of Microsoft's
lobbying, had their statements ready to be faxed before the judge's
ruling was issued at 6:30 p.m. "We were anticipating a negative
decision," said Steve Schmidt, a spokesman for Bliley, whose statement
said he was "troubled" by the ruling.



Although most of Microsoft's congressional support has come from
Republicans and from Democrats who represent the company's home state of
Washington, some other influential Democrats have backed the company's
position, including Reps. Calvin M. Dooley (Calif.) and Barney Frank
(Mass.).

The congressional attacks on the ruling were accompanied by a volley of
barbs from "think tanks" and advocacy groups that Microsoft has worked
with--and in some cases, funded. Among those organizations that fired
off critical comments were the National Taxpayers Union, Citizens for a
Sound Economy, the Cato Institute, the Hudson Institute and Citizens
Against Government Waste.

  [snip]


-- 
James Love / Director, Consumer Project on Technology
http://www.cptech.org / love@cptech.org
P.O. Box 19367, Washington, DC 20036
voice 202.387.8030 / fax 202.234.5176