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Intel probe to rumble on?
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March 10, 1999: 7:23 a.m. ET
Report: FTC investigation of chip maker presses ahead, despite settlement
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LONDON (CNNfn) - Intel Corp.'s settlement of specific antitrust charges with the U.S. Federal Trade Commission earlier this week is far from the final chapter in the semiconductor giant's showdown with regulators, according to a published report.
Contrary to speculation that the agreement may signal an imminent end to the scrutiny over Intel's business practices, the FTC is still pressing ahead with a broader probe into whether Intel abuses its dominant position in the semiconductor industry, The Wall Street Journal reported Wednesday.
On Sunday, Intel and the FTC agreed to settle the suit, which focused on whether the chip maker illegally exerted monopoly power by withholding key technical information from three companies with which it had legal disputes.
The seemingly peaceful resolution contrasted starkly with Microsoft's rough-and-tumble tussle with regulators over similar allegations of monopolistic tendencies.
But while the Intel settlement was seen as narrowly averting more Microsoft-style regulatory mayhem, it did not spell the end of Intel's potential troubles: the FTC's full commission must now lend its imprimatur to the deal.
The Journal said Wednesday regulators are expected to press their investigation on a few key fronts. These include whether Intel is using coercion, price manipulation, control over technology standards, and market leverage and subsidies to give it an unfair advantage over industry rivals.
The newspaper noted that it remains unclear whether the FTC will amass enough compelling evidence to file new charges against Intel.
It also cited industry executives and analysts as saying Intel has already modified its business practices to make it harder for regulators to successfully press anti-competitive charges.
But Chuck Molloy, an Intel spokesman denied Intel had altered its behavior to conform to the regulatory agency, the newspaper said.
Moreover, The Journal says the failure of the settlement to stipulate that Intel is a monopoly may deter potential victims of the company's business practices from offering testimony.
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