Intel announced that it has reached a tentative settlement with the FTC in the antitrust suit the FTC brought against the company in December.

The suit alleged that Intel had violated Section 5 of the FTC Act. In this settlement, Intel does not admit any violations. Intel SVP and General Counsel Doug Melamed offered the following statement:

"This agreement provides a framework that will allow us to continue to compete and to provide our customers the best possible products at the best prices. The settlement enables us to put an end to the expense and distraction of the FTC litigation."

What it boils down to is that Intel cannot pay customers to buy only Intel chips or to refuse to buy chips from competitors. In addition, Intel is not allowed to alter its chip design with the intent of stifling competition. The company must change agreements it has with other manufacturers.

The full agreement can be read here (pdf).

The agreement is subject to a 30 day public comment period and final approval by the Commission.