US government sues Intel for antitrust violations

The US Federal Trade Commission (FTC) on Wednesday sued computer microchip manufacturer Intel for antitrust violations. The complaint alleges that Intel used its dominant market position to stifle competition. According to the FTC, Intel engaged in threats and other unlawful tactics to coerce computer manufacturers not to purchase chips manufactured by its competitors. Director of the FTC's Bureau of Competition Richard Feinstein said that:

Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly. It's been running roughshod over the principles of fair play and the laws protecting competition on the merits. The Commission's action today seeks to remedy the damage that Intel has done to competition, innovation, and, ultimately, the American consumer.

Intel rejected the government's claims, responding that it "has competed fairly and lawfully." The FTC is not seeking monetary damages from Intel, but rather an order to prevent the company from engaging in similar activity in the future.

The suit follows a similar suit filed last month by the New York Attorney General, alleging that the microprocessor manufacturer engaged in illegal conduct to further its dominance in the marketplace. Attorney General Andrew Cuomo claims that many of these agreements were aimed at specifically disadvantaging Advanced Micro Devices (AMD), one of the company's strongest competitors. Also last month, Intel agreed to settle all outstanding legal issues with AMD by paying paying its competitor $1.25 billion.

(Published by Jurist - December 16, 2009)