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Semiconductor industry

U.S. Lawmakers Urge Justice Department to Challenge European Antitrust Rulings

Strategic Insights

— 1 min read

U.S. Representatives Earl Blumenauer and Greg Walden, a Democrat and a Republican respectively, are urging Justice Department antitrust chief Christine Varney to scrutinize recent European antitrust rulings that have fine-tuned U.S. tech companies such as Intel, Google, Microsoft, IBM, and Qualcomm. The lawmakers' effort comes on the heels of the European Commission's $1.45 billion judgment against Intel for excluding competitors from the market for chips known as x86 central processing units. They argue that these rulings are evidence of a trend towards regulatory protectionism in Europe, which could harm U.S. high-tech firms.

Key Takeaways:

  • The European Commission's $1.45 billion judgment against Intel is the latest example of a trend towards regulatory protectionism in Europe, according to U.S. Representatives Earl Blumenauer and Greg Walden.
  • The lawmakers argue that the Intel ruling ignores the reality of a highly competitive marketplace, citing the drastic decline in microprocessor prices over the last decade.
  • The Intel ruling is not an isolated incident; other U.S. companies such as Intel and Google are under review by the FTC, and Microsoft was the target of a 10-year antitrust battle with the Justice Department.
  • The lawmakers plan to send a letter to FTC Chairman Jon Leibowitz, urging him to take a closer look at the European Commission's approach to antitrust regulation.
  • The European Commission's approach to antitrust regulation could shape commerce worldwide, according to the lawmakers.
  • Democratic Representatives David Wu of Oregon, Harry Teague of New Mexico, Rush Holt of New Jersey, and House Science Chairman Bart Gordon have also signed on to the letter.
  • Intel has been a major contributor to the campaigns of Blumenauer and Walden, and employs over 15,000 people at its Oregon facilities.

Statistics:

  • $1.45 billion: the amount of the European Commission's fine against Intel.
  • 15,000: the number of people employed by Intel at its Oregon facilities.
  • 7,000: the number of jobs that Intel plans to preserve or add through a $7 billion investment in Arizona, New Mexico, and Oregon.
  • 10 years: the duration of the antitrust battle between Microsoft and the Justice Department.

Sources:

  • [Draft letter circulating on Capitol Hill]
  • [Aides and Senate staffers]
  • [Intel news]

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