Intel will be forced to change marketing practice – report
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The US Federal Trade Comission is expected to oblige chipmaker to change the way it markets products in antitrust settlement, say FT
Intel will have to change the way it market its chips to settle a long-running antitrust probe, according to a newspaper report.
US watchdog the Federal Trade Commission alleges that Intel abused its market dominance for a period of ten years, discouraging customers from purchasing products from smaller rival AMD.
A report in today's Financial Times states that the company is expected to agree to concessions regarding its business and marketing practises in a settlement due next week.
The settlement will not involve a fine, as the FTC does not have the power to issue them. But antitrust disputes have already cost Intel around $3 billion, including a €1 billion charge from the European Commission in 2009 and a $1.25 billion payout to AMD to settle a civil suit. AMD had alleged that Intel offered hardware makers unfair discounts to pricce it out of the market.
All this has done little to dent Intel's recent success. Last week, the company reported 34% year-on-year revenue growth to $10.8 billion for its most recent financial quarter.
In a separate yet connected antitrust case, computer maker Dell this week offered to settle with the US Securities and Exchange Commission over alleged irregularities in its accounting practises in relation to its dealings with Intel.
