Home / Media and Publications / US Sues Intel for Market Competition Violation

US Sues Intel for Market Competition Violation

The U.S. Federal Trade Commission has filed a lawsuit against the computer chip manufacturing giant Intel, claiming that it sought to maintain its dominant market position by blocking competition.

The lawsuit states that the Silicon Valley pioneer forced computer manufacturers to buy its chips instead of those of competitors, and altered software to ensure poorer performance of processors from other manufacturers. Such measures were part of a carefully orchestrated Intel campaign to block better competing products that threatened Intel’s market share, U.S. regulatory authorities said on Wednesday.

"Intel launched a thoroughly developed campaign aimed at eliminating competitive threats to its own monopoly," said Richard A. Feinstein, director of the agency’s Office of Competition. "It recklessly trampled on the principles of fair play and the laws that protect the principle of equal market competition," he explained. The action was initiated a month after Intel agreed to pay its main competitor Advanced Micro Devices (AMD) $1.25 billion in damages. Intel is also facing proceedings related to market competition violations in the European Union and in the U.S. state of New York. (H)