Political Ramifications

     In a two-hour interview with Fortune magazine, Bill Gates said one reason the actions against his company got as far as they did was that he was not very concerned with politics or damage control in the past. He said business as usual and innovative product development were always his number one concern, so the only voices the DOJ got to hear were those of Microsoft's opponents.

    If this is the case, the situation is certainly changing. Gates showed the DOJ he was ready to play hardball when he approached the Clinton administration and asked them to cut $9 million in funding to the DOJ from the proposed federal budget. Microsoft's new lobbying staff now includes four former members of congress. Also, Microsoft is following its competitors' example, contributing $1.7 million to the campaigns in the upcoming election cycle.

      Microsoft has found allies in both the Senate and House Majority Leaders (Trent Lott and Dick Armey respectively), and even Democratic New Jersey Senator Robert Toracelli. The Republicans have recently told Al Gore they wish to make the case an issue in the upcoming presidential election. Microsoft has plenty of reason to look forward to the upcoming elections and buy time with appeals until then. If the pro-business Republicans take the Whitehouse, the DOJ will be at their command and more likely to settle on friendlier terms.

    At the same time, trust busting itself may get a great boost from Jackson's ruling. Such a high profile case draws a lot of attention to antitrust law, especially when the DOJ wins. It is likely that a string of antitrust action will come from the momentum of this case. Also, the DOJ will probably be on the prowl for more high profile technology targets for future trials.

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