Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

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

(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.

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.
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)
In this April 14, 2008, file photo, an Intel sign is shown in front of Intel Corp. headquarters in Santa Clara, Calif.
In this April 14, 2008, file photo, an Intel sign is shown in front of Intel Corp. headquarters in Santa Clara, Calif.   (AP Photo/Paul Sakuma, file)
A South Korean pedestrian walks past near Intel banners at electronic shop in Seoul, South Korea, Thursday, June 5, 2008.
A South Korean pedestrian walks past near Intel banners at electronic shop in Seoul, South Korea, Thursday, June 5, 2008.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

FTC Hits Intel With Antitrust Lawsuit

Intel Suit Exposes 'Squishy' Antitrust Laws

EU Fines Intel Record $1.45B

Intel Testifies in EU Antitrust Hearings

New York Latest to Investigate Intel Practices


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne