Faster, smaller stick

16 December 2009 By Robert Cyran Follow @rob_cyran

Intel s behavior in the chip market has seemed an obvious target for monopoly watchdogs. Yet an antiregulatory bent and the difficulty in remedying tech abuses kept them out of the fray. FTC’s Intel suit suggests growing confidence among authorities and more actions to come.

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The U.S. Federal Trade Commission has sued Intel, claiming the chipmaker abused its market dominance for a decade to stifle competition and strengthen its monopoly.

The FTC seeks to prevent Intel from using threats, bundled prices, or other offers to encourage exclusive deals, hamper competition, or unfairly manipulate prices of microprocessor or graphics chips. The FTC also may seek an order prohibiting Intel from making or distributing products that impair the performance of rivals' chips.

Intel faces similar investigations by antitrust authorities in Europe and Asia. In November, it paid $1.25 billion to rival chipmaker AMD to settle all claims of anticompetitive behavior. In May, the European Union levied a 1 billion euro ($1.5 billion) fine against Intel for abusing its dominant position in the microprocessor market.

Intel denies the claims and said the FTC suit wasn't based on existing law but is instead intended to make new rules for regulating business conduct.

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