FTC Files Suit Against Intel for Anticompetitive Practices

BY CCIA Staff
December 16, 2009

After investigating allegations of anti-competitive conduct for more than a year, the Federal Trade Commission has filed suit against Intel, accusing the company of using its dominant position in the chip making market to block competitors’ products.

The Computer & Communications Industry Association has been a long-standing advocate for competition in the technology marketplace for more than 35 years. The following statement can be attributed to CCIA President & CEO Ed Black:

“This suit is a big development and shows this administration and this FTC takes antitrust enforcement seriously. It’s good news for American consumers and companies trying to innovate and compete in the chip market.”

“The FTC lawsuit helps to safeguard consumers and the industry at large. Although we commend Intel for settling its private litigation, it is the FTC who is charged with protecting consumers beyond the scope of the private litigation filed by AMD. We hope that Intel continues on its recent conciliatory path and enters into a larger settlement with the FTC so the industry can more swiftly put this chapter in its history behind it.

“The FTC argues in its complaint that Intel has been engaging in this conduct for a decade, which caused considerable damage to competition. But the good news is this lawsuit comes at a crucial moment for competition among graphics processing units. This extra scrutiny could help preserve competition there, which would mean better, cheaper products for customers and more innovation.”

“Intel is a company with good people and innovative products. It has been hard to understand why it would engage in these practices, rather than compete on the merits of its products.

“The FTC indicates in its complaint that at least two companies, AMD and Nvidia, were out-competing some of Intel’s offerings. It appears Intel was falling behind and tried to trip up their competitors. If so, this is a good example of why competition laws and regulators willing to use them are critical to consumers and the nation’s economy, which needs innovation.

“Innovation and products that make technological leaps forward are crucial to our nation’s economic recovery. The FTC’s actions against Intel’s alleged bullying behavior shows it understands the dangers of overlooking evidence that a company is using its position to discourage competing products from reaching the marketplace.

“The charges leveled in the FTC complaint expand on those already launched by antitrust authorities in Europe, Japan and South Korea. Those countries found Intel guilty of breaking their antitrust laws by offering illegal rebate schemes to block rival chip makers’ products. “

For more on this antitrust issue, click here

 

Related Articles

CCIA Responds to Public Consultation on EU Proposal for a New Competition Tool

Sep 8, 2020

Brussels, BELGIUM –The Computer & Communications Industry Association offered comments on the European Commission’s public consultation on the forthcoming proposals for a new complementary tool to strengthen competition enforcement (“NCT”) today. The consultation questions cover a wide range of issues around perceived gaps in the current EU competition rules, particularly those related to what are…

CCIA, 20 Companies, Groups Ask FTC To Pursue Rehearing Of Qualcomm Antitrust Case

Aug 24, 2020

Washington — The Computer & Communications Industry Association joined 20 other companies and associations in a letter encouraging the Federal Trade Commissioners to seek en banc rehearing of its case against Qualcomm. The FTC rightly asserted in its case that Qualcomm’s licensing practices were anticompetitive, hurt rivals and enhanced their monopoly. The trial court judge…

CCIA Expresses Disappointment In Flawed 9th Circuit Qualcomm Decision

Aug 11, 2020

Washington — The 9th Circuit today overturned a district court decision by Judge Lucy Koh, holding that Qualcomm had not violated the antitrust laws by refusing to license competitors in violation of its contractual obligation to do so, by refusing to sell chips unless the customer first took a patent license, and by engaging in…