FTC Sues Intel Over Alleged Anticompetitive PracticesCategory: Manufacturers
Posted: December 16, 2009 01:57PM
The U.S. Federal Trade Commission (FTC) is the latest organisation to come forward and question Intel's business practices, as it today began legal proceedings against the company, accusing it of using coercive tactics to force computer manufacturers to use its products over those of its rivals. The FTC is seeking to restrict Intel's ability to use anti-competitive practices in the future rather than looking to impose and monetary sanctions. The accusations levelled against Intel will sound familiar to anyone who has followed previous similar cases against the company, with disputes with AMD recently being settled with an agreed payment of $1.25 billion. The FTC does expand on previous cases however, which have generally focused on Intel's alleged discounts and other incentives to large manufactures such as HP and Dell providing they drop competitors products (read: AMD CPUs). It does this not only by questioning Intel's approach to the GPU market and whether it has attempted to smother potential competition there, but also by accusing Intel of redesigning compiler software in a way that would deliberately inhibit performance of competing CPUs.
Intel has called the case "misguided" in a public statement, claiming that it based largely on accusations that have been added at the last minute and not thoroughly investigated. An administrative trial in the case should be set to get under way next September.