US accuses Intel of bullying competitors
WASHINGTON (Bloomberg) — The US Federal Trade Commission accused Intel Corp., the world's largest computer-chip maker, of illegally using its dominant market position for a decade "to stifle competition and strengthen its monopoly".
The complaint, which will be heard by an FTC administrative law judge, says Intel tried to block "superior" products by rivals and deprived consumers of choice and innovation for 10 years. Intel has been "running roughshod" over principles of fair play, the FTC charged.
"Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly," Richard Feinstein, the FTC's director of competition, said in a statement. A hearing in the case may be held next September, the FTC said. The agency began probing Intel's business practices in June 2008.
Intel controls more than 80 percent of the world's market for computer chips, dwarfing No. 2 Advanced Micro Devices Inc. Intel has contended with antitrust probes dating back more than a decade and agreed to pay more than $1 billion to AMD last month to settle a four-year dispute. The chipmaker now faces another probe of its business practices and possible steps to curb its dominance of the microprocessor market.
The action, setting the stage for possibly the biggest US antitrust case since the Clinton administration sued Microsoft Corp. in 1998, may reflect increased antitrust scrutiny of the technology industry under President Barack Obama. Jonathan Leibowitz was appointed chairman of the Federal Trade Commission by Obama on March 2.
While the FTC is an independent agency, its actions often reflect the policies of its chairman.
Christine Varney, who heads the Justice Department's antitrust division, said in a speech in May that the administration "will be aggressively pursuing cases where monopolists try to use their dominance in the marketplace to stifle competition and harm consumers."
The Justice Department shares antitrust enforcement responsibility with the FTC.
Intel paid a fine to settle a European Union enforcement action, and will likely resolve the US case by paying another fine, said Joanne Feeney, an analyst at FTN Equity Capital Markets in Cleveland.