This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Intel Hit With More Antitrust Charges In FTC Suit

JORDAN ROBERTSON

SAN FRANCISCO (AP) ¿ The Federal Trade Commission piled on new antitrust charges against Intel Corp. on Wednesday, seeking to end what it described as a decade of illegal sales tactics that have crippled rivals and kept prices for computer chips artificially high.

The FTC's lawsuit contains the most wide-ranging allegations yet against the world's largest chip maker, which is also fighting a record $1.45 billion antitrust fine in Europe and separate cases in South Korea and New York state.

It comes despite Intel having recently settled similar complaints brought by rival Advanced Micro Devices Inc., whose lobbying of regulators led to their charges. In its 2005 lawsuit, AMD quotes a manager from Toshiba Corp. comparing Intel's payments for not using AMD's chips to "cocaine" and an executive from Gateway complaining that Intel's threats of retaliation for working with AMD beat them "into guacamole."

If the FTC prevails, the case could have a broad impact because it concerns two key markets that are dominated by Intel, instead of just one in the other cases.

The FTC is raising new charges of manipulation in the market for graphics processing units, or GPUs, which primarily handle video and other images. Until now, Intel has faced allegations only regarding central processing units, or CPUs, which are the "brains" of personal computers.

Intel owns about 80 percent of the worldwide CPU market, with AMD commanding virtually the rest. Intel also has more than half of the graphics chip market, though rivals Nvidia Corp. and AMD's ATI division dominate the market for standalone graphics chips, whereas Intel's graphics capabilities are baked into its "chipsets," which connect the main processor to the rest of the computer.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AMD $2.33 0.87%
INTC $33.43 0.00%
MSFT $48.24 0.00%
NVDA $22.61 0.00%
AAPL $128.32 -0.30%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs