Turbulent Times for Tech Giants: Antitrust Suits, Mergers, and Sector Shifts

Strategic Insights -

Tech giants are facing increasing pressure as the Federal Trade Commission (F.T.C.) prepares to file an antitrust lawsuit against Intel, accusing the company of abusing its market dominance. Analysts believe this suit, along with the pending action against Microsoft, may significantly alter the competitive landscape in the tech sector. Meanwhile, major players like Qwest Communications International are consolidating, while digital transformations and online auctions are reshaping the industry. Newspaper giants, too, are facing new challenges as readers turn to the web for their news.

Key Takeaways:

  • The F.T.C. is preparing to file an antitrust lawsuit against Intel, accusing the company of abusing its market dominance.
  • This move is part of a broader trend of increased regulatory scrutiny of tech giants, including Microsoft, which faces a separate antitrust lawsuit.
  • Qwest Communications International expects to retain most of LCI International's top executives following the $4.4 billion acquisition, with the exception of Anne K. Bingaman.
  • The sale of Byte magazine to CMP Media has led to the suspension of its publication and layoffs of 74 of its 85 employees.
  • Washington, D.C. is emerging as a key hub for internet-related start-ups, with over a thousand companies vying for a presence.
  • Businesses are increasingly turning to online auctions for goods, with Forrester Research estimating $8.7 billion in business-to-business goods to be auctioned online in 1998, growing to $52.6 billion by 2002.
  • Time magazine has launched a World Wide Web site to cover the 1998 soccer World Cup, sponsored by major technology and telecommunications companies.
  • The rise of online sales and digital transformations is putting pressure on traditional companies, threatening their stock values and overall industry stability.

Statistics:

  • Intel holds approximately 90% of the microprocessing market for personal computers.
  • Qwest's acquisition of LCI International totals $4.4 billion.
  • 74 employees were laid off at Byte magazine following its sale to CMP Media.
  • Forrester Research estimates $8.7 billion in business-to-business goods will be auctioned online in 1998.
  • The World Wide Web site launched by Time magazine to cover the 1998 soccer World Cup is sponsored by major companies like Hewlett-Packard and Nokia.
  • Microsoft and Intel are facing separate antitrust lawsuits in the United States.

Sources:

  • Page D2: "F.T.C. Prepares to File Antitrust Suit Against Intel"
  • Page D8: "Tina Brown's Contract Up in the Air"
  • Page D4: "LCI Executives to Remain at Qwest"
  • Page D4: "Publication of Byte Suspended"
  • Page D5: "Washington Creates a Silicon Valley"
  • Page D8: "Critic Rates Nation's Big Dailies"
  • Page D5: "Businesses Bid on Cyberauctions"
  • Page D12: "Time Starts Soccer World Cup Site"
  • Page D5: "Strong Companies Hurt by Upstarts"