THE zinc-finger protein Kruppel (Kr)(1) is an integral part of the Dro
sophila segmentation gene cascade(2) and is essential in organogenesis
during later embryonic development(3). In tissue culture, Kr regulate
s transcription(4-9). Monomeric Kr can act as a transcriptional activa
tor, whereas Kr dimers formed at high concentrations cause repression(
6). Here we show that Kr-dependent control of transcription involves f
unctional interactions with components of the basal RNA polymerase II
transcription machinery, which includes the initiation factors TFIIA,
B, E, F, H and I (refs 10, 11) as well as the TATA-binding protein (TB
P) and TBP-associated factors (TAFs) contained in the multisubunit TFI
ID (ref. 12). Our results indicate that when acting from a site close
to a basal promoter, monomeric Kr interacts with TFIIB to activate tra
nscription, whereas an interaction of the Kr dimer with TFIIE beta w,
a subunit of TFIIE, results in transcriptional repression.