Wednesday, December 16, 2009

Intel Facing Antitrust Lawsuit from FTC


For years manufacturers such as AMD have filed suits against Intel for antitrust in the competitive chip market.  These suits claimed that Intel held a calculated plan to remain dominate and not allow other manufacturers to compete with Intel for penetration into the market.

While some of the prior suits have been settled like one of the AMD suits, the FTC is taking action and proceeding with an antitrust lawsuit of their own.  The FTC is claiming that the practices of Intel have deprived consumers of a choice and have slowed innovation in the chip market.

Richard A. Feinstein, director of the FTC's Bureau of Competition says that "Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly,", he added "It's been running roughshod over the principles of fair play and the laws protecting competition on the merits.".  The FTC is asking for an order to bar Intel from using threats, bundled pricing and other offers that hamper competition.

Intel had hoped that this matter would be closed once they settled their suit from AMD and added that the agency rushed the lawsuit without fully investigating the charges and believes the suit to be misguided.




The aftermath of this suit regardless of the outcome will mean a big change in the market for everyone.  With Intel having a large hold on the market, the brands of chips and pricing for PCs in general will see a big change.  This is something to watch as it effects all of us who use PCs or Macs.

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