[Congressional Record Volume 145, Number 60 (Thursday, April 29, 1999)]
[Senate]
[Pages S4426-S4427]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         MICROSOFT CORPORATION

  Mrs. MURRAY. Mr. President, I rise today to talk about an issue of 
great importance to Washington State and our country. I know it is an 
issue the Presiding Officer, the Senator from Washington, shares 
concern with me. There has been a lot of talk in recent months in the 
media and on the Senate floor about Microsoft and the Department of 
Justice. I want to take a few minutes today on the Senate floor and 
share a few of my thoughts on Microsoft.
  Recently, Microsoft's competitors and critics have portrayed 
Microsoft as a serious threat to the technology sector. I can speak 
from experience about Microsoft. The Microsoft I know is far different 
than the ruthless company that has been described in newspaper 
articles. My own professional and political career covers the 20-year 
period of Microsoft's growth from the first personal computers to 
today's innovative software programs which have spurred consumers and 
educators and students and the business community to the reinvention of 
their daily lives.
  Almost everyone is familiar with Microsoft and its products. Bill 
Gates and Paul Allen, the company's founders, had one vision in mind--
that one day every home and family would have a PC. It was an ambitious 
goal but one that seems more attainable every day. Through the years, 
the company has developed tremendous innovations in the technology 
industry, but Microsoft is more than the product it makes. I want to 
take some time today to talk about the things Microsoft does to make 
the lives of everyone in our country better.
  I have spent most of my career as an advocate for education. I have 
traveled all across my State visiting schools and talking to students, 
parents, teachers, and local business leaders. I have worked hard to 
put computers into schools and train teachers in the use of technology 
and make sure that all children, no matter who they are or where they 
come from, has access to technology and the opportunities such skills 
and knowledge bring.
  If there is one thing I have learned, it is that providing a good 
education, if we want to do it, takes the involvement of everyone, and 
that is particularly true of businesses. Microsoft believes one of its 
most important goals is to build technology to empower teachers and 
families to make lifelong learning more dynamic, more powerful, and 
more accessible. To this end, Microsoft contributes more than a half 
billion dollars annually for education, workforce training, and access 
to technology programs.
  Microsoft is a leader in education technology. Through its connected 
learning community effort, they help students and educators and parents 
access technology, and through its ``Working Connections'' program, 
Microsoft supports technology training for underserved populations 
through the Nation's community college system. If we want our young 
people to compete for high paying technology jobs, we need to make sure 
they have the right skills.
  Microsoft is also a leader in addressing the technological gap in 
many communities across our country. The Gates Library Foundation 
grants provide public access to the Internet in underserved areas in 
both rural and urban settings. Their ongoing financial commitment to 
this effort is making a real difference for underserved populations and 
areas.
  I tell you these things today because I know firsthand of all the 
great things Microsoft and its employees are doing to bring new 
inventions and opportunities to American consumers.
  When a grandfather learns how to e-mail his grandchild and play a 
larger role in that child's life, I appreciate Microsoft's efforts on 
behalf of families. When a Washington State family finds work in the 
technology sector, I appreciate Microsoft's contribution to my State's 
economy. When a child discovers the Internet as an educational tool for 
the first time, I see a child filled with excitement, for learning and 
hope for the future, and I thank Microsoft for helping to make that 
possible. That is the Microsoft I see and that is the Microsoft I 
represent in the Senate.

  Now, we all know that high technology, and particularly the software 
business, is immensely competitive. Certainly, Microsoft, and all the 
other Washington high-tech firms, compete vigorously. That is the 
nature of these industries. Washington State has become a high-tech 
leader through hard work, a dedicated and creative workforce, and an 
unmatched quality of life.
  Microsoft has enjoyed immense success over the years and continues to 
grow at an impressive rate. This success has been hard fought, however, 
and has recently drawn the oversight of the Department of Justice.
  The Department of Justice has alleged consumer harm, but I have to 
ask: Where are the consumers who have been hurt? There is no consumer 
uproar over Microsoft or its business practices. Microsoft's business 
model--high volume, product sales at low prices--is both successful and 
proconsumer.
  Microsoft's consumer benefits are well understood by the American 
public. A recent nationwide poll conducted by Hart-Teeter found that 73 
percent of those polled believe Microsoft has benefited consumers, and 
69 percent of those individuals have a favorable impression of 
Microsoft.
  While those results do not surprise me, I was surprised to learn that 
66 percent of those polled believe that the Government should not be 
pursuing this case against Microsoft, and more than half of the 
respondents believe that this case represents a poor use of tax 
dollars.
  I have read the complaint filed by the Justice Department and I have 
followed the court proceedings in this case. I have seen how easy it 
might be to conclude, based on press reports, that Microsoft is faring 
poorly in the courtroom. The vigorous courtroom presentations during 
the trial have led to an aggressive public relations effort outside the 
courtroom. I think it is time for the parties in this case to move to a 
more productive dialogue.
  The judge in this trial has implored both sides to seek a settlement. 
And I agree. Microsoft and the Justice Department should do all they 
can to meet the judge's request. Both sides should be free to pursue a 
settlement in private and free from the influence of the public and 
their competitors. Settlement of this case will mean that consumers 
will continue to benefit from Microsoft's innovative products and the 
antitrust claims will be put to rest.
  At issue here is more than just the fate of Microsoft. The resolution 
of this trial will have broad implications on the software industry as 
a whole. Microsoft employs more than 30,000 people, including 15,000 
from my home

[[Page S4427]]

State. The U.S. software industry employs more than 600,000 people and 
enjoys an annual growth rate of 10 percent.
  The industry paid more than $36 billion in wages to U.S. employees in 
1996. Software and high-tech companies have been the driving force 
behind the economic expansion that we continue to experience here in 
the United States, and much of our economic future lies in these 
knowledge-based industries. We have to be cautious and thoughtful about 
Government intervention so that we do not stifle the economic promise 
that software and high-tech companies offer.
  Of course, we should not protect companies or guarantee profits and 
market share. But we--as legislators and as the Federal Government--
must be careful to correctly interpret the state of competition. My own 
view is competition is alive in this industry. Any tech company that 
rests on its current product line or stock price risks a quick and 
decisive downfall.
  While Microsoft is headquartered in Redmond, WA, my remarks are more 
than a defense of a constituent company. My concerns should be felt by 
every Senator on this floor.
  A recent piece in the Wall Street Journal offered the following 
passage:

       Dominant firms are the norm in high tech. TV ads boast that 
     virtually all internet traffic travels on Cisco systems. 
     Quicken has 80 percent of the financial-software market. 
     Netscape once boasted of having 90 percent of the browser 
     business. Intel still has 76 percent of the microprocessor 
     business. America Online, Lotus Notes and Oracle all dominate 
     their respective markets. Executives who work in such glass 
     offices should think twice before encouraging zealous 
     prosecutors and gullible reporters to define monopoly as a 
     large share of an artificially tiny market.

  The high-tech industry employs 4.5 million workers across this 
country. According to the American Electronics Association, 47 of the 
50 States added high-tech workers between 1994 and 1996. It is not just 
States such as Washington and California and Texas that are booming as 
a result of technology jobs. Georgia, Colorado, North Carolina, Oregon, 
Illinois, Virginia, Florida, and Utah are States that are experiencing 
phenomenal job growth in the tech sector.
  To maintain this impressive nationwide job growth in the technology 
sector, the Congress and the Federal Government must be careful. Let's 
not forget that most of this phenomenal growth occurred over the last 
decade when technology was not on either the Federal or congressional 
radar screen.
  Before yielding, let me reiterate the points that brought me to the 
floor today. I hope each of my colleagues will give serious 
consideration to these issues.
  Microsoft is a true Washington State and American success story that 
is still unfolding for the benefit of consumers, business and the 
general public. Microsoft has a particularly impressive record of 
community activism, and I am especially proud of the company's efforts 
in the area of education.
  The ongoing court case is of utmost interest and importance to me in 
the work I do in the Senate. I implore all parties to give the legal 
system an opportunity to work. Judge Jackson has urged both parties to 
seek a settlement, and I strongly encourage them to heed the judge's 
advice.
  Finally, the outcome of the Microsoft case will have long-term 
ramifications on our Nation's economy. Technology is growing rapidly, 
and we all know many technology jobs are high-paying, family-wage jobs. 
The United States is a technology superpower. The Federal Government 
must use its immense powers with care and caution in monitoring the 
technology sector. When the Federal Government interjects itself in 
this intensely competitive sector of our economy, it must ensure that 
it does not do serious damage to our economy.
  Mr. President, I again urge my colleagues to pay attention to the 
Microsoft case. I look forward to discussing this issue with my 
colleagues again on the floor of the Senate.

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