Bush says he is against breaking Microsoft

Microsoft may have made a potential misstep in appointing Edward Tobin as the companies chief lobbyist in Washington DC because of his ties to an unpopular Republican governor. Meanwhile, Presidential candidate George W. Bush, campaigning just 15 miles from Microsoft’s headquarters, said he would not have sued Microsoft on antitrust grounds and as president, would not support breaking up the company.

The problem with Tobin could limit Microsoft’s effectiveness in lobbying for legislative issues affecting its business or matters concerning the government’s antitrust lawsuit. Tobin worked for four years as a key advisor to former Massachusetts Governor William Weld, a moderate whose views run counter to those in the powerful right wing of the party. Reportedly, Congressman Tom DeLay, the No. 3 ranking House Republican, has expressed concerns over Microsoft’s choice. Analysts said the ties to Weld might indicate that Tobin lacked conservative credentials

Microsoft has had a rapidly growing voice in Washington politics, especially on issues concerning the high-tech industry. The company played a key role, for example in getting legislation passed to protect companies from Y2K-related lawsuits. Clearly Microsoft appointed Tobin for his close ties to the Republican party. Microsoft is pacing a huge value on remaining in good standing with the party that may control its fate in the outcome of the antitrust lawsuit that was brought by the Clinton Administration's Justice Department.

Bush or John McCain, should one of them prevail in the November elections could have a tremendous impact on the outcome of the case by appointing Justice Department officials that are not bend on breaking apart Microsoft and would not appeal any court rulings in favor of the company. Bush on Monday told a campaign rally crowd in Seattle that, "If you're looking for the kind of president I will be, I'll be slow to litigate. My first question will be, `Are the entities innovative, are jobs being created, is the economy better off?'' Bush said.

Bush also made it clear he would not seek to break up Microsoft. "I think the great fear is that Microsoft will be broken up, I am worried about the consequences if this company were to be broken apart, this engine of change, engine of growth . . . but we'll see what the courts say on the issue." Microsoft, meanwhile, does not appear ready to drop Tobin like a hot political potato over the concerns some conservatives may have over his party loyalties. "Ed is a solid professional with a strong track record in both government and the private sector,'' said Rick Miller, a company spokesman.

Many of those congressmen may end up not caring that much. Not in an election year with Tobin controlling who gets campaign contributions, and who doesn’t. And, since Microsoft’s Political Action Committee has started to contribute heavily to Democrats running for Congress, analysts said concerns of Tobin’s ties to Weld are likely to be forgotten quickly. Last year, Microsoft nearly tripled its political contributions from the 1998 spending of $1.8 million. This year, the budget is expected to more than double again.