Intel in talks to settle antitrust case
22 June 2010 | 
Author: Professor |
The Associated Press 22 June, 2010
Intel is in talks with the U.S. Federal Trade Commission over settling an antitrust case against the world's largest chipmaker.
The FTC filed charges in December against Intel, seeking to end what it described as decades of illegal sales tactics that have hampered competitors and kept prices for computer chips artificially high.
This week, the FTC and the company agreed to suspend administrative trial proceedings as they work on hashing out a settlement.
The commission has said it seeks to change Intel's behaviour, not just impose fines as the European Union and South Korea have. Last year, Intel paid a record fine worth $1.45 billion US to European regulators but the company is appealing.
Intel and the FTC have 30 days to reach an agreement. If they do not settle, the case will go to trial before an administrative law judge in September.
The FTC lawsuit contains the most wide-ranging allegations yet against Santa Clara, Calif.-based Intel. If the FTC wins, the case will have a broad impact because it affects two key markets dominated by Intel — central processing units used in personal computers, and graphics chips used in PCs and other devices.
The FTC accuses Intel of strong-arming computer makers into exclusive deals, manipulating technical data to make its microprocessors appear more powerful than those from competitors, and blocking rivals from making their chips work with Intel's.
Intel, which disclosed the settlement talks late Monday, disputes the charges and contends it has merely been offering discounts.
The New York Attorney General's office is also investigating Intel.
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