U.S. FTC Slams Intel With Antitrust Suit
December 16, 2009 11:40 AM
comment(s) - last by
FTC accuses Intel of numerous violations, including writing software to sabotage its competitors' hardware
Intel holds a
in the computer industry, with over 79.1 percent market share in the microprocessor market, according to
from the summer (these reports included by x86 architecture microprocessors as well as alternatives like ARM). In May 2009 the European Union's antitrust regulators
fined the chipmaker $1.45B USD
-- about a fourth of the company's 2008 net income ($5.292B USD) -- for allegedly using discounts and OEM payoffs to push its smaller competitor Advanced Micro Devices out of the market. That ruling is currently
In the U.S. the Federal Trade Commission has investigated similar claims. The State of New York has
against the Santa Clara, Calif.-based company for antitrust violations, but thus far no federal litigation had been filed. That all changed today with the FTC
, citing numerous antitrust violations.
The landmark case comes on the heels of
Intel's $1.25B USD settlement
with AMD over similar claims. Under that agreement AMD agreed to drop all pending and present litigation against its rival. According to the FTC's lawsuit filing, Intel is depriving customers of free choice and is stifling the progress of the computer industry. The filing says that Intel employed a carrot-and-stick sort of approach, using both threats and rewards to keep OEMs from using its competitors' products. Reportedly Intel used such targets on Dell Inc., Hewlett-Packard Co., and IBM Corp.
One of the more interesting aspects of the case is that the FTC claims to have evidence that Intel wrote compiler software (Intel makes one of the more commonly used commercial C++ code compilers, the Intel C++ Compiler) to sabotage the performance of its competitors' CPUs. Little is known about this allegation at this point.
Richard Feinstein, director of the FTC's Bureau of Competition, says Intel's violations are blatant and alarming. He states, "Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly. It's been running roughshod over the principles of fair play and the laws protecting competition on the merits. The Commission's action today seeks to remedy the damage that Intel has done to competition, innovation, and, ultimately, the American consumer."
The FTC case looks to prevent Intel from employing "threats, bundled prices, or other offers to encourage exclusive deals, hamper competition, or unfairly manipulate the prices of its" CPUs.
Intel was recently
fined $25M USD
by the South Korean government for antitrust violations. The FTC's investigation of Intel was
first announced officially in June 2008
. Under the more pro-antitrust Obama administration the investigation has
pushed ahead aggressively
and now looks to place new fines or restrictions on the chipmaker.
This article is over a month old, voting and posting comments is disabled
12/16/2009 12:26:59 PM
So you're providing a political comment completely un-related to the main point of the article? To me, it
that you were commenting on how the FTC filing an anti-trust suit is "anti-business". Instead it was just an Obama administration bash. Fair enough.
Ignoring the political commentary, your other comments are NOT a moot point. As I mentioned, many of these litigations focus on practices in the last 10 or so years. Who's to say that, in a fair market environment, demand for other competitor's products wouldn't have gone up? Thus, profits would go up and they would have invested more in manufacturing capacity to be further competitive/meet demand. From what i've seen, estimating damages is more of an art rather than a science. It involves a lot of charts, graphs and regression analysis. Granted, i'm no expert in anti-trust cases but I can assume damages will be calculated based on what COULD have been rather than what IS at the present.
Finally, I have no idea why you're linking certain people on this thread to fanboyism. If Intel is shown to have broken FTC rules and regs, then they acted illegally and should be accordingly penalized. Fanboyism has nothing to do with it. Enjoy your Core 2 Duo. Who's to say that these alleged practices didn't stifle AMD (or any other competitors therein) from investing additional R&D to develop an even better chip?
"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive
Intel, AMD Settle Antitrust Disputes, Intel to Pay AMD $1.25 Billion
November 12, 2009, 9:34 AM
Intel Slapped with Antitrust Lawsuit by NY Attorney General
November 4, 2009, 12:25 PM
Intel Appeals Massive $1.45B EU Fine
July 22, 2009, 12:08 PM
European Commission Fines Intel $1.45B
May 13, 2009, 9:04 AM
Intel Profits Increase 25%, Reports Great Quarterly Sales
July 16, 2008, 12:02 PM
ZOTAC Announces Diminutive ZBOX PI320 pico
August 27, 2014, 9:00 AM
Quick Note: QNAP Announces $129 QGenie 7-in-1 NAS for Mobile Users
July 14, 2014, 9:32 AM
Apple Launches 21.5” iMac with 1.4GHz Core i5 Processor Priced at $1,099
June 18, 2014, 8:07 AM
Lowe's "Holoroom" Brings Holodeck, Home Improvement Dreams Closer to Reality
June 13, 2014, 9:06 AM
Intel to Broaden Market for Fanless Tablets, Ultrabooks with 14nm Intel Core M
June 3, 2014, 10:42 AM
ZOTAC Announces Four New Silent ZBOX Mini-PCs
June 2, 2014, 9:21 AM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
LG Posts Teaser Video of Its “Round Face” G Watch R Smartwatch, Set for IFA Lauch
August 24, 2014, 2:49 PM
Windows 9: "Upgrade Now" Button Coming for Enterprise Updates, ARM Preview in H1 2015
August 26, 2014, 8:00 PM
Second ZMapp-Treated Patient Dies of Ebola, Supplies Run Out
August 25, 2014, 7:03 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information