FTC Opens Antitrust Investigation of Intel

Smaller rival AMD has long accused it of unfair practices
By Nick McMaster,  Newser Staff
Posted Jun 6, 2008 2:47 PM CDT
Advanced Micro Devices Inc. CEO Hector Ruiz talks during his keynote at Oracle Open World conference in San Francisco in this Nov. 12, 2007, file photo.   (AP Photo/Paul Sakuma, file)
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(Newser) – The FTC has opened a formal investigation of Intel over allegations of monopolistic business practices, the Wall Street Journal reports. The world's biggest semiconductor company, which denies any wrongdoing, received a subpoena this week. Intel also learned that it faces a $25.4 million antitrust fine from South Korea, even as it prepares to fight competitor AMD’s private antitrust lawsuit in Delaware’s District Court.

Detractors claim that Intel attempts to starve out competitors by giving unfairly large rebates to large-volume customers. Intel reps say the rebates they give are nothing more than common wholesale bargains. They cite a 42% decline in chip prices in the last 8 years as evidence that the market is healthy.