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| FTC sues Intel, alleges practices stifle competition |
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The Federal Trade Commission said on Wednesday that it has sued Intel Corp., the world’s leading computer chip maker, charging that the company has illegally used its dominant market position for a decade to stifle competition and strengthen its monopoly.
According to the Complaint, the FTC alleges that Intel Intel’s anticompetitive tactics have shut out rivals’ competing microchips by cutting off their access to the marketplace. In the process, Intel deprived consumers of choice and innovation in the microchips that comprise the computers’ central processing unit, or CPU. These chips are critical components that often are referred to as the “brains” of a computer. “Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly,” said Richard A. Feinstein, Director of the FTC’s Bureau of Competition. “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 is seeking an order which includes provisions that would prevent Intel from using threats, bundled prices, or other offers to encourage exclusive deals, hamper competition, or unfairly manipulate the prices of its CPU or GPU chips. Intel claims that the FTC allegations are “misguided”. "Intel has competed fairly and lawfully. Its actions have benefited consumers… The FTC's case is misguided. It is based largely on claims that the FTC added at the last minute and has not investigated. In addition, it is explicitly not based on existing law but is instead intended to make new rules for regulating business conduct. These new rules would harm consumers by reducing innovation and raising prices,” the company said in a statement. In the past, the European Union and Asian nations have conducted their own investigations of Intel's business practices in the l market. The company is accused of using bullying tactics and bribes to get computer makers such as Dell to use Intel chips instead of those made by competitors, such as AMD. . |
| Last Updated ( Wednesday, 16 December 2009 20:02 ) |








