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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: RTev who wrote (24195)	6/15/1999 6:31:00 PM
From: Jill	Respond to of 74651

It was great testimony, I agree. That and the "soft $" MSFT's been giving to democrats and republicans alike may affect the outcome, as the judge doesn't operate in a vacuum. I hope, anyway! Jill

To: RTev who wrote (24195)	6/15/1999 10:57:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

Here is the entire Seattle Times story for those interested. It appears to have been a good show----be Mr. Nice Guy. It seems to have worked. It influence some at higher levels of court or even Jackson in subtle ways.--You never know what judges are really thinking (and their influences) especially since he is a "conservative" appointee. Gates praises govt. regulatory approach to his industry by Danny Westneat Seattle Times Washington bureau WASHINGTON - Saying the "light hand of government is working very well," Microsoft Chairman Bill Gates surprised a congressional committee today by praising the government's regulatory approach to his industry. The sometimes combative Gates even lauded the antitrust laws that are being used to attack his company's business practices at a federal courthouse a few blocks away. "I think the laws as they are currently written are fine," a smiling Gates told an economic committee as part of a three-day summit on issues affecting the technology industry. "You would not advocate any changes at this point?" asked Sen. Charles Robb, D-Va. Gates said no, but then made the only reference, albeit veiled, to his company's troubles in court. "Certainly everything that has gone on in the technology industry has come about because things like integrating new features in (products) is one of the freedoms that all companies have," he said. The Justice Department and 19 states sued Microsoft last year over precisely this "integration" issue: whether Microsoft violated antitrust laws by adding Internet browsing technology into its dominant Windows 95 operating system, potentially giving Microsoft a huge advantage in a new market. Today, with a one-day break in the trial, Gates came to Capitol Hill to try to shift the focus away from the courthouse question of whether Microsoft is a bullying monopolist. If today's hearing is any indication, he may have succeeded. Senators and members of the House heaped praise on Gates and asked mostly favorable questions about the productivity of the industry. Gates also answered questions from several high-school students asked live across the Internet. Gates said the industry and government have to work out some "tricky issues," such as taxation and the policy that forbids U.S. companies to export software that contains high-level encryption codes. But mostly he complimented the politicians, pointing out how visionary they had been in helping finance development of the Internet before anyone outside of a few universities knew what it was. "I think that the incredible success of this industry in the United States owes a lot to the light hand of government," he said. The hearing contrasted sharply with one in the same room a year ago, during which Gates was called "the most dangerous industrialist of our age." At that time, a number of senators expressed contempt for some of Microsoft's tactics, and the Senate Judiciary Committee proceeded to shower the company with civil subpoenas as part of a formal investigation. The mood on Capitol Hill has shifted markedly in Microsoft's favor, said Sen. Patty Murray, D-Wash., one of the company's staunchest defenders in Congress. "It was obviously very intense a year ago, but around here nobody talks about it much anymore," she said. "It's off in the courts, and Congress has moved on. "Bill came in here last year and said the tech world could change overnight, and it has. The people here are realizing more and more that he was right and that Microsoft has been very positive for the entire economy." While Gates offered no suggestions for changes in the antitrust laws, he encountered support for such an idea. Majority Leader Dick Armey, R-Texas, is drafting a bill aimed at changing the ways courts define "markets," said his press secretary Michele Davis. Rep. Jennifer Dunn, R-Bellevue, hosted a lunch for Gates in Armey's Capitol Hill office today, though the subject of changing the laws did not come up, she said. The definition is key to determining whether a company has a monopoly. In the Microsoft trial, the defense has argued the market for software is so broad and the industry so competitive, that the Windows operating system is not a monopoly. The Department of Justice and states contend Microsoft does hold a monopoly in the market for personal-computer operating systems. "The whole way you define a market is so antiquated," Davis said. "He (Armey) has a real conviction that 100-year-old laws don't make much sense. We are modernizing 60-year-old banking laws, and the antitrust laws are more than due for review." Later, Microsoft officials said they had not heard of Armey's proposal, and Gates said he's not at the Capitol to discuss antitrust laws. "If you're asking if I'm here lobbying for any change in the law, the answer is no," he said. Later today Gates planned to discuss policy with Senate Democrats in a private meeting hosted by Murray, and with Senate Republicans in a meeting hosted by Sen. Slade Gorton, R-Wash. He also planned to hobnob with Republican and Democratic leaders of the House. Information from Seattle Times Washington bureau reporter James V. Grimaldi is included in this report. Danny Westneat's phone-message number is 206-464-2772. His e-mail address is: dwestneat@seattletimes.com Copyright © 1999 Seattle Times Company