FTC Takes Aim at Intel in Antitrust Complaint
The Federal Trade Commission has voted to bring an antitrust complaint against Intel Corp., accusing the chip maker of using its monopoly position to stifle competition. The complaint alleges that Intel has withheld vital computer information and threatened to reduce chip supply to competing companies, including Digital Equipment Corp., Intergraph Corp., and Compaq Computer Corp. This move comes on the heels of a landmark Justice Department antitrust lawsuit against Microsoft Corp.
Key Takeaways:
- The FTC complaint alleges that Intel used its monopoly power to stifle competition, withholding vital computer information and threatening to reduce chip supply to competing companies.
- Intel has been accused of freezing out Digital Equipment Corp., Intergraph Corp., and Compaq Computer Corp. from advance information.
- The industry observers criticized the move, contending that the government action may stifle innovation and slow software development.
- Bill Frezza, analyst and partner at Adams Capital Management, believes that the government action may slow software development due to the need for longer development time for software compatible with different processors and operating systems.
- Intel plans to appeal to a federal court and deny the allegations, stating that the FTC's complaint is based on "mistaken interpretation of the law and the facts."
Statistics:
- Intel chips are found in 90% of today's personal computers (Source: Original Text)
- The FTC complaint is 11 pages long (Source: Original Text)
- Intel has maintained its monopoly for 20 years, with the PC industry still dealing with incompatible operating systems and central processing units (Source: Original Text)
- National Semiconductor, AMD Corp., and Cyrix are among the companies competing with Intel, but Intel still dominates the market (Source: Original Text)
Sources:
- "FTC Votes to Bring Antitrust Complaint Against Intel", Reuters
- "Intel To Appeal FTC Ruling on Antitrust Practices", Forbes