FTC Goes After Intel Over Anti Competitive Behaviour

Intel, the world's largest semiconductor manufacturer and arch rival to a number of companies including Nvidia, AMD and others, has been sued by the US Federal Trade Commission (FTC) which considers that it has been acting in an anti competitive way.

The body, whose main role is to foster innovation by encouraging competition in the open market, says that Intel has used its size and marketshare to crush its competitors and stifle innovation by using a number of anti competitive measures.

The semiconductor company had already agreed to pay $1.25 billion last month to settle a dispute with AMD, its much smaller rival and the only real competition remaining in the market.

The European Commission had fined Intel more than $1.5 billion earlier on after it was accused of anti competitive behaviour and the fact that the FTC had already started to talk to Nvidia over possible antitrust issues related to Intel could only mean bad news for the company.

The company now has ten months before its case is heard before an administrative judge, concluding an investigation that started in June 2008 when the FTC first started investigating the semiconductor giant over alleged anti-competitive behaviour.

More specifically, Intel stands accused of using a carrot-and-stick approach, rewarding computer makers when buying its own products and penalising them when they buy from other companies like Nvidia, VIA or AMD. Companies included in the dossier are IBM, Dell, Acer and HP.

Our Comments

Goliath is losing to David although this time around, David is surrounded by a number of Strong Arm partners. So no surprise there that Intel lost 1.74 percent shortly after the NASDAQ opened, earlier today. AMD share prices jumped to 5.67 percent with Nvidia following the same trend with a 7.16 percent increase.

Related Links

FTC files formal complaint against Intel

(T3)

FTC whacks Intel with anticompetition complaint

(The Register)

F.T.C. Accuses Intel of Trying to Stifle Competition

(NYTimes)

Intel being sued for using size to keep out rivals

(BBC)

FTC Sues Intel for Anticompetitve Practices

(PCMag)