Intel, FTC settle antitrust suit

Intel, FTC settle antitrust suit

Summary: Intel and the Federal Trade Commission have settled their antitrust suit and there are a bevy of requirements for the chipmaker.

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Intel and the Federal Trade Commission have settled their antitrust suit.

Under terms of the deal, Intel will be prohibited from:

  • Offering benefits to computer makers in exchange for promises to buy Intel chips exclusively or cutting out others.
  • Retaliating if a PC maker goes with another chip maker.

Intel is also required to do the following:

  • Modify its intellectual property agreements with AMD, Nvidia and Via so they can merge without being sued for patent infringement.
  • Extend Via's licensing agreement for five years beyond the current deal that ends in 2013.
  • Maintain the PCI Express Bus interface for at least six years so it won't harm graphics competitors.
  • Disclose when Intel compilers discriminate between Intel chips and non-Intel chips.

The FTC, which sued Intel in December 2009, said:

By accepting this settlement, we open the door to competition today and address Intel’s anticompetitive conduct in a way that may not have been available in a final judgment years from now. Everyone, including Intel, gets a greater degree of certainty about the rules of the road going forward, which allows all the companies in this dynamic industry to move ahead and build better, more innovative products.

Intel said:

The settlement enables us to put an end to the expense and distraction of the FTC litigation.

Topics: Security, Enterprise Software, Hardware, Intel, Legal, Networking, Processors

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14 comments
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  • OTELLINI needs to GO TO JAIL

    It is disgusting that Intel engaged in this despicable, monopolistic behavior for a decade or more. Intel apparently has too much lobbying power in Washington.

    Send Otellini to Jail. What a crook. Intel's sales people should go to jail, too.
    RichardEich
  • Recognition

    "By accepting this settlement, we open the door to competition today ..."
    Isn't it the FTC's mandate to make sure the door never gets shut in the first place? Didn't they learn anything about corporate greed from Microsoft? Apparently not.

    "... and address Intel?s anticompetitive conduct in a way that may not have been available in a final judgment years from now."
    Fine those involved enormous sums now and send their execs to prison ... or did the FTC too sell out?

    "Everyone, including Intel, gets a greater degree of certainty about the rules of the road going forward, ..."
    Nobody is uncertain in any way whatsoever about the principles and benefits of an open market ... except US bodies charged with maintaining the same e.g. FTC.

    " ...which allows all the companies in this dynamic industry to move ahead and build better, more innovative products."
    ALL COMPANIES. How does the Netscape browser and AMD chip business look these days: does it appear dynamic?

    The FTC statement would be laughable were the matter not so serious. I cannot understand why it hasn't been pilloried mercilessly by all of ZDNET. Don't people stateside recognise the death of the American Dream? Apparently not.
    jacksonjohn
  • RE: Intel, FTC settle antitrust suit

    I just wish Intel would get product shipping to the Reseller Channels. For over 5 years now, it's been next to impossible for my company to get quantities of intel servers in the USA. It's a big joke, they divert the product to (deleted) and then cry when they don't meet their sales goals. Intel, build some more plants in the USA, there are not enough plants to produce the products your resellers need. Ask your distributors product managers if you have doubts. We used to sell 15-30 servers a month, and 200-300 all Intel PCs a month. Even 5 a month would be nice, but there is no stock ever. Another example, We've waited 3 months so far for e6700 cpus. You promise it, we get orders from customers, and you don't ship it, killing our sales, and the customer spends that money on new cars and phone systems instead. STOP IT!! Bring back sanity and Andy Grove or his clone, this stuff didn't happen from 1997 to 2005. They're so busy making mobile and atom stuff, they don't see us over here waving, HEY, ship us 90 server boards and cpus.
    therealrossjohnson
  • This certainly proves one thing

    Our constitutional republic remains the finest form of governance money can buy. ;)

    This latest "settlement" merely highlights how democratic government remains a fickle, dawdling, cumbersome, inefficient but *alas* [i]necessary[/i] evil. Remove regulatory oversight, and these same capitalist institutions invariably start to run amok, thinking of nothing past their own self centered, short-term hides.

    Profits and perks continue to be horded at the top. The functionaries below serve as little more than mercenaries who can scratch for loose peanuts amongst the discarded shells, while the top brass, boardroom elite, and big play shareholders skim off most of the cream for themselves. Everyone and everything else - including the home country that provides a safe haven for their internationalized hides - can basically kiss their rumps in whatever manner they deem fit.

    Sadly Intel is not unique in this regard. They're just the latest to be called to the carpet for leveraging hard-ball methodologies (recall the MS Way). All the multinationals play by these same "catch me if you can" rules, constantly pushing the envelope of audacity, and testing whatever waters are before them to see what they can get away with.

    If unrestrained capitalism teaches us anything, it is that no pie is big enough to gobble up, and rules are made to be broken. The mad march to globalization highlights this like nothing else.
    klumper
    • RE: Intel, FTC settle antitrust suit

      @klumper you are one of the most ignorant people I have read on here, first off you contradict yourself in the first two sentences !

      We can not be both a Constitutional Republic and a Democracy at the same thime, they are as the eudcated fool would say mutually exclusive !

      Secondly your ignorance is carried to new heights when you say that unfair practices and monopolies are examples of Capitalism.

      First off you like Mike Moore eveyones fav left wing film maker seem to be unaware of what Corporatism is, you like Mr. Moore confuse Capitalism with Corporatism !

      So let me enlighten you klumper, Capitalism is not at work in Global Fortune 500 Monopolies that will gladly make losses public then steal taxpayer money from the government slime and stick the taxpayer with the bill making profits private when things turn good !

      GM Government Motors is the perfect example of this. The Obama Car Company had private proftis for many years acting like Capitalists.

      Then when thigs went bad instead of going into bankruptcy like a real capitalist would do they decided, no comrades we are Socialists now and want to share our glorious losses with everyone they did so by stealing money from the taxpayer up front and then the government printed money after the deal went down gave it to Obama Motors through the Federal Reserve and then GM gave it back to the government claiming they paid us back !

      Yet they did so with our money and because it was newly printed money it means the value of our currency just went down so in the end no matter what way you look at it Obama Government Motors stuck us with the bill !

      Now they are making a profit, yet the profit is not be shared with me and you like thier loss was ! Why ?

      A real capitalist deals with or eats their loss, they do not pass it off to taxpayers like many of the Global Fortune 500 do on a regular basis.

      When my company has a bad year I eat it and do not have much money to buy things, I am a Capitalist ! This is what happens to Capitalists when they have bad times !

      Also a monopoly is not an example of the pure competition capitalism fosters. A good example of this would be the resaurant indstry, It's somewhat easy to get in, yet the chances or success are low.

      You see nearly every industry people like you talk about and use as examples of capitalism gone bad are the ones most deviod of Capitalsim, and are in fact the ones with the most government regulation, most laws and most beuracrats in control.

      Energy, Auto, Tech, Pharma and Agricluture come to mind just to name a few !

      As a result theese are the areas that always seem to have problems and are always the most courrupt with government slime around every corner. They are also the hardest to open a business in, you just try to go start a new oil rig, or car company even in you had Trillions or dollars I would dare you to do it and not have to grease the palms of soo many corrupt politicans you need to keep seperate books just keep track of all the payoffs you would have to make !

      So you still think industries like this are examples of free market capitalism ?
      electroman76
      • Take a deep breath

        @electroman76 <br><br>and please, put down that capitalists-can-do-no-wrong puritanical banner you're carrying like some cross to Calvary. Read a bit more of my scratch before you start hurling torpedoes from the hip. If not, try some Prozac. ;)

        Beyond that, do you honestly wanna split hairs over the > real world < definitions of "Constitutional Republic" versus "Representative Democracy" as it applies to what we're dished up in the good ol' US of A? Be my guest big boy, only watch out you don't trip over any unsecured shoe laces. Well, unless you're fresh out of some unnamed, academic debate club.<br><br>Read my response below for more.
        klumper
  • RE: Intel, FTC settle antitrust suit

    The Obamunists are at it again as they pick and chose who they go after !

    Dont believe me consider this if Intel is wrong to do this then why are companies like Wal Mart not wrong to make special deals with Televison and other electronics manufactures to stonewall the competiton and put them out of business on a regular basis ?

    Answer because the Obama admin is in bed with Wal Mart, Hillary Clinton was a longtime corporate lawyer for Wal Mart and remember Wal Mart endorsed Obamacare knowing that it will most likely be Wal Mart's pharmacy who becomes the prefered provider of Prescription Drugs for the State Run Healthcare system when all is up and running !

    So the end result is comanies like Intel who do not play ball with the King Hussein Obama will be punished in the courts while those who do like Wal Mart will be rewarded and allowed to step up their monopolistic practices !

    Another example would be to ask why not Microsoft ?

    Microsoft did this very same thing to Acer a few years back when the Linux netbooks showed up ! Yet Obama will not punish his boys in Bentonville AK and will not punish his boys in Redmond WA!

    So thanks to Big Governmen we actually get less choice in the end ! More companies will merge forming fewer yet larger and more opressive Global Fortune 500 Tech Companies. Thus keeping start ups out the action by making the cost of entry so high it's not worth the risk !

    Next a question, why force anyone to keep an old technology in this case PCI Express ?

    PCI-E is old by computer standards and should be replaced right away if Intel has something better !

    In closing, since when were we not able to buy and AMD ? I have bought nothing but AMD's for the last 5 years and have had no trouble doing it!
    electroman76
  • Obamunists vs Dubyaists

    @electroman76

    The Obamunists have plenty to answer for, and the socialized medicine they're itching to push is the last thing any rational or sensible person would want - ask any junkie about their "candy" pusher as time goes on. Only ask yourself one thing: What does Dubya Jr have to show for his eight years of governance? He and Hawk Cheney have as much to do with the mess this country is in as do the crackpot socialists.

    When they could have been reining in big business and the increasing excesses of globalization, assuring jobs on the home front, and FINALLY securing our borders from invasion (since that was the LAST thing on minds of Slick Willie and Bushwhack Sr.), those two jokers instead took up running a crusade in the quicksand of the Middle East at the behest of their Oil Conglomerate masters and darling Israel.

    So let's be real here. The left play to their multinational corporate pals, the unions, atheists, minorities, and of course the international banking cadre who help elect them (with allegiance for all to the Star of David). The right play to their corporate and industrial pals, the clueless neocons, hawks, bible thumpers, and of course the international banking fraternity who help elect them (with allegiance for all to the Star of David).

    It's little more than two faces of the same stinking coin at the base and core level. RepubliCONS and DemocRATS -- it's largely a [b]con[/b] game in the modern era, run by [b]rats[/b]. At the end of the day, the two parties have more in common than they do differences (beyond all the smoke cast for public consumption). It's the very reason why so little ever gets accomplished at the federal level -- except in the most predictable ways!
    klumper
  • INVENTORS - DO NOT TRUST INTEL!!!

    So there wasn't anything in the ruling about apologizing to Stuart?

    INVENTORS - DO NOT TRUST INTEL
    I invented a CPU cooler - 3 times better than best - better than water. Intel have major CPU cooling problems - "Intel's microprocessors were generating so much heat that they were melting" (iht.com) - try to talk to them - they send my communications to my competitor & will not talk to me.

    Winners of major 'Corporate Social Responsibility' awardS!!!

    Huh!!!!

    When did RICO get repealed?"

    INVENTORS - DO NOT TRUST INTEL!!!

    BTW, I have the evidence - my competitor gave it to me.

    BBTW, I am prepared to apologise to Intel if;
    ? They can show that the actions were those of a single individual in the company, acting outside corporate policy, and:
    ? They gain redress on my behalf.

    Although playing a major role in it's facilitation, the power of the internet appears to have come as much a surprise to Intel as it has to the catholic church.

    Inventors - help your fellow inventors - share your experiences with companies - good and bad.

    DELETING THIS POST WOULD VIOLATE FREE SPEECH RIGHTS, AND IS AGAINST THE INTEREST OF INVENTORS - WHO ARE TRYING TO SOLVE THE MANY PROBLEMS ON THIS PLANET.

    I ACCEPT FULL RESPONSIBILITY FOR VERACITY OF ABOVE.

    COMPLAINTS - FORWARD TO STUART21 AT MAC.COM

    APOLOGIES FROM INTEL - FORWARD ALSO TO STUART21 - BUT QUICKLY! I CAN'T HOLD MY BREATH MUCH LONGER!! :-)
    Stuart21@...
    • RE: Intel, FTC settle antitrust suit

      @Stuart21@... A company is not required by either law or ethics to listen to outside inventors. It might be against their best business interests doing so, but that after all, is their business.
      dabble53
  • RE: Intel, FTC settle antitrust suit

    @Stuart21 can you fill us in cause it seems i and probably most on here are confused about what you are trying to say,
    but please elaborate it sounds interesting.
    johnpall@...
  • INVENTORS - DO NOT TRUST INTEL

    John - this is the gist of it -

    I invented a CPU cooler - 3 times better than best - better than water. Intel have major CPU cooling problems - "Intel's microprocessors were generating so much heat that they were melting" (iht.com) - try to talk to them - they send my communications to my competitor & will not talk to me.

    Thanks for your interest,
    Stuart.
    Stuart21@...
  • all i know is microsoft and pentagon is using the real worm altering laws

    for 3 years, i been fighting the hackers involved that is blamed on botnet. the truth is that the main hacker used our machines to raise traffic that had an influence on the outcome of a law passed called rootlaw. ill read more on this lawsuit to see if i can see anything..

    the hackings are all about the traffic to cover its tracks
    antihacker101
  • Lol! Nice post!

    John - this is the gist of it -

    I invented a CPU cooler - 3 times better than best - better than water. Intel have major CPU cooling problems - "Intel's microprocessors were generating so much heat that they were melting" (iht.com) - try to talk to them - they send my communications to my competitor & will not talk to me.

    http://edproblemsolver.com | http://edpillsaustralia.com | http://edpillsuk.com | http://fightextrafat.com | http://anxietystopper.com | http://france-pharma.com/ | http://brasil-pharma.com for 3 years, i been fighting the hackers involved that is blamed on botnet. the truth is that the main hacker used our machines to raise traffic that had an influence on the outcome of a law passed called rootlaw. ill read more on this lawsuit to see if i can see anything..
    propecia