Intel Ordered to Change Its Ways

    March 8, 2005

Intel was given a warning by Japan’s antitrust regulators for violating antitrust laws by offering unfair rebates to stifle competition.

The company was ordered by the FTC to have periodic inspections and training sessions to change its procedures.

According to a Financial Times article,

“Intel, which has more than 80 per cent of the global microprocessor market, has long faced antitrust scrutiny from both the US and Europe. A key to its dominance is its ‘Intel Inside’ marketing programme, which has paid out several billion dollars over the years to manufacturers who use its chips.

Intel is currently facing a probe in Europe, stemming from a complaint by AMD in 2001 that it was abusing its market position to ensure customer loyalty. Intel has been investigated numerous times in the US on issues related to its business practices, though it has been cleared of any anti-competitive practices.”

“There is a broad consensus that competition regulators should only intervene where there is evidence of harm to consumers. It is apparent the (FTC’s) recommendation did not sufficiently weigh these important principles,” said Intel vice president Bruce Sewell.

Intel must respond to the FTC’s orders within 10 days.

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