Earlier, Advanced Micro Devices (AMD) and Intel settled out-of-court over AMD's charges of antitrust and licensing issues. It was noted at the time that the agreement only settled their private spat; any governmental lawsuits would continue. On Wednesday, the Federal Trade Commission (FTC) sued Intel over what it called "anticompetitive" tactics.
The FTC's suite accuses Intel of using its market dominance “to stifle competition and strengthen its monopoly.” The complaint alleges that Intel used a systematic campaign to block rivals such as AMD from selling their products by cutting off access to the market. The FTC's statement says that:
Intel carried out its anticompetitive campaign using threats and rewards aimed at the world’s largest computer manufacturers, including Dell, Hewlett-Packard, and IBM, to coerce them not to buy rival computer CPU chips. Intel also used this practice, known as exclusive or restrictive dealing, to prevent computer makers from marketing any machines with non-Intel computer chips.
In doing so, the press release adds, Intel made it impossible for consumers to have access to "superior" products at a "lower price." The FTC asked that Intel be precluded from any such anticompetitive actions in the future, including "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. The FTC also may seek an order prohibiting Intel from unreasonably excluding or inhibiting the sale of competitive CPUs or GPUs, and prohibiting Intel from making or distributing products that impair the performance–or apparent performance–of non-Intel CPUs or GPUs."
Intel has responded with its own press release. In it, the company denies any wrongdoing, and says that the FTC is "rushing to judgment." The company says that "The FTC’s rush to file this case will cost taxpayers tens of millions of dollars to litigate issues that the FTC has not fully investigated. It is the normal practice of antitrust enforcement agencies to investigate the facts before filing suit. The Commission did not do that in this case."
The FTC's action on Wednesday follows a year-long investigation into the matter. It follows recent antitrust complaints against Intel by European regulators and the New York attorney general, Andrew Cuomo. It also follows by a month the aforementioned settlement between Intel and AMD, which some thought might preclude federal action.
Written by Michael Santo
HULIQ.com
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