Intel Accused by U.S. of Illegal Monopoly Practices

Dec. 16 (Bloomberg) -- The U.S. Federal Trade Commission accused Intel Corp., the world’s largest maker of computer chips, of illegally using its dominant market position for a decade “to stifle competition and strengthen its monopoly.”

The complaint, which will be heard by an FTC administrative law judge, says Intel tried to block “superior” products by rivals and deprived consumers of choice and innovation for 10 years. Intel has been “running roughshod” over principles of fair play, the FTC charged. A hearing in the case could be held next September, the FTC said today.

“Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly,” said Richard A. Feinstein, the FTC’s director of competition, in a statement.

Intel, based in Santa Clara, California, controls more than 80 percent of the world’s market for computer chips, dwarfing No. 2 Advanced Micro Devices Inc. Intel has contended with antitrust probes dating back more than a decade and agreed to pay more than $1 billion to AMD last month to settle a four- year dispute.

Intel used “threats and rewards” aimed at computer manufacturers including Round Rock, Texas-based Dell Inc., Palo Alto, California-based Hewlett-Packard Co. and Armonk, New York- based International Business Machines Corp., according to the FTC statement. Intel coerced the companies not to buy rival central processing unit chips, according to the statement.

Intel fell 13 cents, or less than 1 percent, to $19.67 at 9:35 a.m. New York time in Nasdaq Stock Market trading. The shares rose 35 percent so far this year through yesterday.

Intel spokesman Chuck Mulloy didn’t immediately return a phone call.