Intel Faces Anti-Trust Lawsuit Over Market Dominance

Strategic Insights -

The Federal Trade Commission is set to vote on whether to take action against Intel, the world's largest microchip manufacturer, over allegations of market dominance and anti-competitive practices. The investigation, which has been underway for some time, has gathered evidence suggesting that Intel has used its monopoly position to pressure computer makers and withhold technical specifications from customers. The company's aggressive business style, led by chairman Andy Grove, has been the subject of controversy, including allegations of uneven distribution of technical information and delays in shipments during commercial disputes.

Key Takeaways:

  • The Federal Trade Commission is expected to vote on whether to take action against Intel over allegations of market dominance and anti-competitive practices.
  • Intel is accused of using its monopoly position to pressure computer makers and withhold technical specifications from customers.
  • The company's chairman, Andy Grove, has a reputation for an aggressive business style, which has been the subject of controversy, including allegations of uneven distribution of technical information.
  • Intel's processors are found in 90% of personal computers, making the company's market dominance significant.
  • The company may be forced to license some of its technology to competitors to introduce more competition in the chip market.
  • Intel is also alleged to have delayed shipments to customers during commercial disputes and withheld technical specifications from customers.
  • The FTC investigation has gathered evidence that Intel has used its market power to favor certain computer makers over others.
  • Steve Newborn, a Washington lawyer representing Intel rivals, expects the FTC to sue Intel unless the company achieves a settlement.
  • Intel and Microsoft are often referred to as the high-tech industry's most powerful couple, with their hardware and software being widely used.

Statistics:

  • 90% of personal computers contain Intel processors.
  • The FTC investigation has gathered evidence suggesting Intel has used its market power to pressure computer makers.
  • The company is accused of withholding technical specifications from customers when it does share information.

Sources:

  • The Times, copyright (C) 1998.