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FTC Sues Intel for Monopoly Abuses

WASHINGTON (CN) - The FTC sued Intel this morning, claiming that the computer chipmaker used its control of the market to strangle competition and preserve its monopoly for a decade. The FTC claims that Intel "waged a systematic campaign to shut out rivals' competing microchips by cutting off their access to the marketplace."

In a statement announcing its lawsuit, the Federal Trade Commission said that "Intel's anticompetitive tactics were designed to put the brakes on superior competitive products that threatened its monopoly in the CPU microchip market. Over the last decade, this strategy has succeeded in maintaining the Intel monopoly at the expense of consumers, who have been denied access to potentially superior, non-Intel CPU chips and lower prices."

Among the FTC's demands are that Intel be prohibited from "entering into, implementing, continuing, or enforcing a contract with any customer that requires the customer to disclose to respondent any plans the customer may have to sell, or offer for sale, computer products containing a competing relevant product," and prohibited from "suing or threatening to sue its competitors' third-party fabricators."


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