Ask HN: Govt regulation regarding applications for software jobs?

Got an email from an M$ recruiter about a position. Contained the usual drivel, however one sentence jumped out.

"It is a government regulation that every candidate interested in a position at MS, is required to apply."

It sounds like an invented 'regulation', however I was wondering if this is a fallout of the investigation into the hiring practices at the big three software companies.

If not, I'm wondering why would a recruiter be dumb enough to add an extra step in the hiring process and further reduce the chances of getting good talent by making them jump through another hoop ?