Update: FTC files formal complaint against Intel
Intel waged 'systematic campaign' to cut off rivals' access to marketplace, agency says
IDG News Service -
The U.S. Federal Trade Commission (FTC) has filed an antitrust-related lawsuit against Intel, charging the world's largest computer chip maker with illegally using its dominant market position to stifle competition and strengthen its monopoly for a decade.
The FTC alleged that Intel has waged a "systematic campaign" to cut off rivals' access to the marketplace. Intel deprived consumers of choice and innovation in the microchip industry, the FTC alleged.
The FTC's complaint is an effort to create "new rules for regulating and micro-managing business conduct," Intel senior vice president and general counsel Doug Melamed said during a press conference.
Instead of filing a traditional antitrust complaint, the FTC alleged that Intel has violated Section 5 of the FTC Act prohibiting unfair methods of competition. The decision to file an FTC Act complaint, which covers more ground than an antitrust complaint, ignores decades of established antitrust guidance, Melamed said.
"Put simply, Intel has not violated the law," he added. "We have been sued today because we were not willing to agree to demands that would have been bad for our company, bad for the computer industry, and bad for consumers."
The FTC's decision to move forward with a case against Intel comes just a month after Intel settled antitrust and patent disputes with rival Advanced Micro Devices. Intel agreed to pay AMD $1.25 billion in the settlement.
Intel's tactics were designed to "put the brakes" on superior products from competitors, the FTC said. Intel's efforts have denied microchip customers access to potentially superior products and lower prices, the FTC's complaint said.
"Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly," Richard Feinstein, director of the FTC's Bureau of Competition, said in a statement. "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."
Intel, in a statement, disputed the FTC's allegations. "Intel has competed fairly and lawfully," the statement said. "Its actions have benefitted consumers. The highly competitive microprocessor industry, of which Intel is a key part, has kept innovation robust and prices declining at a faster rate than any other industry."
Intel called the FTC case "misguided," and said the complaint was based largely on claims the FTC added "at the last minute." The complaint is "explicitly not based on existing law but is instead intended to make new rules for regulating business conduct," Intel said. "These new rules would harm consumers by reducing innovation and raising prices."
- Intel confirms using ARM-based chip core in smartwatch it demoed at CES
- You'll want a PC with Intel's new chip for the battery life alone
- Desktop chips zip past 4GHz; next stop 5GHz?
- After a tough year, Intel and HP push ahead on Itanium
- Dell testing 64-bit ARM server with AppliedMicro chip
- Physicist says Moore's Law is 'collapsing'
- Intel's Ivy Bridge chips raise the bar for rivals
- Intel ready to take on tablet chips
- AMD execs tout firm's tablet plans
- AMD moves away from Intel rivalry, rethinks course
- Cloud Computing Drives IT and Business Agility Hybrid Cloud Accelerates Time to Value What is the main focus for IT in your organization - cost or agility? Many IT discussions today focus on cost controls rather...
- Infographic:10 Reasons to Choose vCloud Air Looking to create an agile, productive, and efficient IT environment? Read this simple infographic to learn about the benefits that VMware vCloud® Air™...
- Data Visualization Techniques: From Basics to Big Data with SAS Visual Analytics This paper discusses some of the basic issues concerning data visualization, from data size and column composition, to solving unique challenges presented by...
- 5 Hybrid Cloud Starting Points Did you know that more than 50% of organizations are already using or planning a move to hybrid cloud?
- Cloud BI in Action: Recorded Webinar of Customer, Kony, Inc. See how Kony, Inc., a leading enterprise mobility company, is using TIBCO Jaspersoft for Amazon Web Services and Redshift to achieve embedded analytics...
- Cloud BI Overview: Jaspersoft for AWS Check out this overview of Jaspersoft for AWS, to easily and affordably build business intelligence solutions as well as embed visualizations and analytics... All Processors White Papers | Webcasts