Intel hit with lawsuit over competition abuses
Thursday 17 December 2009
Intel, the world's leading microchip maker, which is already facing the largest European Union fine for anti-competitive practices, was yesterday hit with further legal action in its main market, the US.
The company has been accused by the US Federal Trade Commission (FTC) of abusing its dominant position by offering deep discounts to computer manufacturers that agreed not to use any other company's chips.
Intel had been hoping to settle the long-running investigation, particularly after agreeing to pay rival Advanced Micro Devices (AMD) $1.25bn (£760m) last month to end years of litigation.
The company reacted angrily to the FTC's decision to launch a civil lawsuit. Doug Melamed, Intel's senior vice president and general counsel, said: "The commission insisted on unprecedented remedies – including the restrictions on lawful price competition and enforcement of intellectual property rights set forth in the complaint – that would make it impossible for Intel to conduct business."
Intel, which has a market share of about 80 per cent, has been found in violation of monopoly laws in several countries, including Japan, and in the EU, where it was ordered to pay €1.06bn (£940m) in May.
"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 yesterday. "It's been running roughshod over the principles of fair play and the laws protecting competition on the merits."
The FTC's move is in line with US President Barack Obama's promise to pursue a more aggressive stance on competition issues than the previous Bush administration.
Under its settlement with AMD, Intel agreed to "abide by a set of business practice provisions" that included refraining from giving financial incentives to companies that limit their use of AMD chips. The FTC decided those promises, nor others offered by Intel during settlement talks, did not go far enough towards preventing abuse.
- 3 The enemy within: People who hear voices in their heads are being encouraged to talk back
- 4 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
- 5 SAG Awards: Fake applause track interrupts Reese Witherspoon
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
Asteroid narrowly scrapes past Earth: how to watch the closest space rock for decades as it flies by
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...