Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo illustration: Aïda Amer/Axios. Photo via The Washington Post.

Oracle, the business software giant, has maintained exceptional sway with the Trump administration that has helped it win policy battles and thwart its larger competitors.

Why it matters: The techlash that's causing headaches for Google, Facebook and Amazon has yet to hit Oracle. Instead, the company is helping stoke some aspects of the tech critique in D.C. itself — highlighting the distinction between its own fee-for-service model and free, ad-based businesses.

What they're saying: “We have been working hard to point out that there is no techlash. There is a substantial backlash against the business model where purportedly ‘free services’ are offered in exchange for massive and unconstrained collection of consumer data untethered to the underlying service, " said Ken Glueck, Oracle's executive vice president and top Washington lobbyist. "Winter is here for that business model.”

Driving the news: Over the last two years, Oracle has turned is sights on Amazon, a competitor in the cloud-computing business.

  • Amazon recently lost the fight for a major Defense Department cloud contract worth up to $10 billion after the White House instructed the department to re-examine awarding the contract, according to The Washington Post.
  • While Oracle didn’t win the contract, either — the Defense Department chose Microsoft — Oracle has a better relationship with Microsoft and prefers this outcome to an Amazon win.
  • Oracle CEO Safra Catz reportedly discussed the contract issue with Trump during a dinner at the White House in April 2018.
  • Glueck created a flow chart detailing the connections between Amazon executives and former Defense Secretary Jim Mattis, per the Post.
  • Oracle was also among the funders of the Free and Fair Markets Initiative, an anti-Amazon group, according to a Wall Street Journal report.

The backstory: Catz developed ties with the Trump administration early on.

  • Catz and other technology executives met with President Trump at Trump Tower in New York in Dec. 2016 before the inauguration, and Catz joined the transition team.
  • Her name was floated for administration positions, including national security adviser.
  • “Safra Catz in particular would have very good access, and different from the rest of the tech industry,” said a former administration official. “She was for Trump before a lot of other people, and a lot of the tech industry is still not for Trump. She gets meetings, she gets access.”

The big picture: Oracle grew rich and strong as a corporate database provider in the '90s and expanded into an array of business software markets from retail to HR via acquisition.

  • It has held onto a big chunk of the business software market amid a shift from onsite servers to the cloud.
  • Its market cap remains significantly smaller than that of Big Tech giants such as Apple, Microsoft, Amazon and Google.
  • It has staked out positions on net neutrality and online platforms' legal immunity for user-posted content that set it apart from competitors.

Details: Oracle has successfully supported law and policy changes that may not directly benefit the company, but could cause problems for its rivals.

  • The company weighed in with the FCC to support the repeal of Obama-era net neutrality rules that were favored by Google and other tech companies. Catz met with FCC Chairman Ajit Pai ahead of the commission’s Dec. 2017 vote to back the repeal.
  • Oracle publicly supported a legislative carve-out to the law that protects online platforms from liability over user-generated content. The Internet Association, whose members include Google and Facebook, fought the change before reaching a compromise with lawmakers.
  • Glueck said the liability shield, Section 230 of the Communications Decency Act, would never be signed into law today if proposed again. "There is no longer any justification for Section 230 in an era of artificial intelligence, machine learning, and advanced analytics," he said, adding, "If there are concerns for small businesses and small innovators, then 230 should be modified to protect those kinds of contributors."

What's next: Google is facing antitrust probes from the Justice Department, a bevy of state attorneys general and Congress. That has opened up a new front for Oracle.

  • Oracle confirmed it received information requests relating to Google from states and congressional investigators, per Reuters, as well as regulators in Australia.
  • Oracle and Google have also fought a decade-long copyright battle over code in the Android operating system that could end up at the Supreme Court.
  • Google declined comment for this story.

Go deeper

Caitlin Owens, author of Vitals
1 hour ago - Health

What overwhelmed hospitals look like

A healthcare professional suits up to enter a COVID-19 patient's room in the ICU at Van Wert County Hospital in Ohio. Photo: Megan Jelinger/AFP

Utah doctors are doing what they say is the equivalent of rationing care. Intensive care beds in Minnesota are nearly full. And the country overall continues to break hospitalization records — all as millions of Americans travel to spend Thanksgiving with friends and family.

Why it matters: America's health care workers are exhausted, and the sickest coronavirus patients aren't receiving the kind of care that could make the difference between living and dying.

Felix Salmon, author of Capital
1 hour ago - Economy & Business

Southwest CEO: "You should fly"

The official guidance of the CDC says that "postponing travel and staying home is the best way to protect yourself and others this year."

  • Southwest Airlines CEO Gary Kelly, however, took the opposing position when he was interviewed by "Axios on HBO." "You should fly," he told me, adding that "we need to have as much commerce and business and movement as is safe to do."

Cárdenas: Democrats need to be more "culturally competent" to win

Photo: Paul Morigi via Getty Images

Rep. Tony Cárdenas (D-Calif.), who's running for chair of the Democratic Congressional Campaign Committee, told "Axios on HBO" that the DCCC needs to change "overnight" and his colleagues need to be more "culturally competent" if they want to be successful in the next election.

Why it matters: House Democrats are confronting what went wrong and what their party needs to change after they failed to expand their House majority and President Trump expanded his support among Latino voters.