European antitrust officials study Intel; inquiry takes up an effort ended by FTC in 2000 on ties to PC makers

Article Abstract:

The European Commission has begun an antitrust investigation into Santa Clara, CA-based Intel Corp. The US Federal Trade Commission ended its Intel investigation in 2000 without taking any action. At issue are Intel's 'strong-arm' tactics with other chip-maker customers and the company's exclusionary marketing practices. The EC is also concerned with Intel's international market share, its power to influence technical standards and efforts to discourage competition.

Government regulation (cont), European Union, Company legal issue, Cases, Antitrust law, European Union. European Commission

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FTC launches antitrust probe of Intel

Article Abstract:

Intel is the target of a broad Federal Trade Commission (FTC) antitrust inquiry, as the agency is issuing formal demands to important computer and chip manufacturers. The antitrust probe is investigating how Intel has achieved its PC industry dominance. This may not result in a case against Intel, but the chip maker probably will soften its market activity. The investigation will focus on allegations such as Intel's alleged punishment of companies that anger the giant. Intel has been accused of buying from a target company's competitors and withholding its supply of Intel chips. Other alleged Intel activities under investigation include rewarding favored customers with hot new chips and attaching the sale of one product to others. Microsoft, the other dominant PC company and an Intel partner, has been under Justice Department antitrust scrutiny since 1993. The FTC conducted its first major Intel investigation between 1991 and 1993, taking no further steps.

Laws, regulations and rules, Government Regulation

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Intel still faces another probe by FTC; broad inquiry into practices is active, but chip giant has softened its tactics

Article Abstract:

Despite settlement of antitrust charges, Intel Corp. remains under investigation by the Federal Trade Commission. At issue are whether Intel punishes PC makers that use rival chips, whether it manipulates chip pricing, stifles competition through its marketing subsidies and its control over technology standards. Complaints about Intel may be hard to substantiate, as rival Advanced Micro Devices Inc. has found, discovering that it is difficult to find PC makers that are willing to testify as to allegations of improper pressure by Intel or inducements of ADM customers. ADM has recently won orders from most large PC makers, which tends to undermine ADM's complaints that Intel's practices have harmed its competitors.

Marketing procedures, Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Restraint of Trade, Discrete Semiconductors, Semiconductor device, Electronic components, Unfair competition (Commerce), Unfair competition

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