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Microsoft Spends $2 Million

Tech Companies Lobby on ECPA, Encryption, Privacy, Security in Q2, Reports Show

Microsoft reported $2.07 million in lobbying spending for Q2, about a 7.6 percent dip from the same period last year, while IBM spent $1.52 million from April through June, a 16 percent decline. As of our deadline, they were the only two major technology companies to file Q2 lobbying reports that were due Wednesday. Among the issues that both lobbied on were cybersecurity, encryption, government access to customer data located in overseas centers, international trade agreements and patent and trademark issues.

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Microsoft scored a victory against the government last week when the 2nd U.S. Circuit Court of Appeals ruled DOJ couldn't force the company to provide customers' electronic communications stored in a data center in Ireland (see 1607140071). The company lobbied on the Law Enforcement Access to Data Stored Abroad Act (Leads) and International Communication Privacy Act that would spell out how the government could request such data (see 1605250050 and 1607180026). It also lobbied on legislation updating the Electronic Communications Privacy Act (ECPA), which passed the House but is stalled in the Senate (see 1606090007), that aims to improve privacy protection for customers' stored communications.

Microsoft also lobbied on other issues including mutual legal assistance treaty (MLAT) reform, the Judicial Redress Act and the recently approved EU-U.S. Privacy Shield (see 1607120001), and on online, student and health privacy issues including the Children's Online Privacy Protection Act. IBM also lobbied on a few of those same issues like the Trans-Pacific Partnership Agreement and Leads Act, but it also focused on the Developing Innovation and Growing the Internet of Things Act (see 1604200024).

Other major tech lobbying giants like Amazon, Apple Facebook and Google hadn't reported for Q2 yet but some of their hired lobbying firms did. At least 17 firms for Google reported combined spending of $945,000 for the quarter on cybersecurity, data breach and ECPA bills, plus encryption, patent reform, changes to the MLAT process, FCC reform and telecom policy, online privacy and drones, among many others. Google's top firms were Crossroads Strategies, Gephardt Group, Podesta Group and S-3 Group, with each reporting receiving $80,000.

So far, eight firms hired by Amazon reported getting a combined $470,000 in Q2 to lobby on issues including consumer protection and bills related to preventing companies from implementing gag clauses in their terms of service to prevent negative online reviews by customers (see 1607130023), cybersecurity, Federal Aviation Administration reauthorization, internet governance such as ICANN’s Internet Assigned Numbers Authority transition plans, IoT issues and net neutrality. Akin Gump and Squire Patton were two of the top firms, each paid $80,000 by Amazon. Oracle paid a combined $695,000 to 13 lobbying firms to cover similar consumer privacy and cybersecurity issues, plus health-related tax and workforce matters. Two of its top firms are Fierce Government Relations and The Nickles Group, each paid $90,000 for Q2.

A handful of firms reported as of our deadline lobbying for Facebook including Peck Madigan Jones, McBee Strategic Consulting and Stewart Strategies and Solutions. Their reports noted lobbying on privacy and security issues, including breach notification legislation, student privacy bills and encryption issues, plus ECPA and cybersecurity information sharing legislation. Apple's firms, including Fierce Government Relations and Franklin Square Group, also reported lobbying on privacy, security, encryption, ECPA, patent litigation reform, FAA reauthorization and student privacy.

Editor’s note: This story is the among those that examine what major technology companies lobbied on during Q2. For a story on telecom lobbying, see 1607200077.