FTC Prepares to File Antitrust Lawsuit Against Intel

Strategic Insights -

The Federal Trade Commission is gearing up to take on tech giant Intel in a high-stakes antitrust lawsuit, targeting the company's alleged practices of withholding technical information from computer manufacturers. The suit, expected to be filed in just over two weeks, aims to break the dominance of Intel's microprocessors in the market, which run 90% of personal computers. This move comes on the heels of a separate lawsuit filed by the federal government and 20 state attorney generals against Microsoft.

Key Takeaways:

  • The FTC is planning to file an antitrust lawsuit against Intel, accusing the company of selectively withholding technical information from computer manufacturers.
  • The lawsuit aims to break Intel's dominance in the microprocessor market, which currently runs 90% of personal computers.
  • The commission is expected to ask Intel to share information about its processors with all manufacturers.
  • The proposed lawsuit charges that Intel illegally retaliated against four companies, including Digital Equipment Corp. and Intergraph Corp., during patent disputes.
  • Intel has claimed it has the right to withhold proprietary information according to its own business interests.
  • An Intel spokesman has stated that the company is cooperating fully with the commission and believes it will be determined to have behaved lawfully.
  • The suit is expected to open up a second front on the "Wintel" domination of the computer market, following a separate lawsuit filed against Microsoft.

Statistics:

  • 90%: The percentage of personal computers running Intel microprocessors and Microsoft Windows operating systems.
  • 20: The number of state attorney generals who have filed a lawsuit against Microsoft.
  • 4: The number of companies accused by Intel of patent disputes, including Digital Equipment Corp. and Intergraph Corp.

Sources:

  • The New York Times
  • United Press International