[Congressional Record (Bound Edition), Volume 145 (1999), Part 6] [Senate] [Pages 7933-7935] [From the U.S. 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 [[Page 7934]] 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 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. [[Page 7935]] 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. ____________________