oooohhhh, Intel's in trouble now...

Discussion in 'Stocks' started by ByLoSellHi, Jun 6, 2008.



    UPDATE: FTC Opens Formal Antitrust Probe Of Intel
    Dow Jones
    June 06, 2008: 12:26 PM EST

    (Updated to include Intel confirmation, additional background.)


    The U.S. Federal Trade Commission has opened a formal investigation of Intel Corp. (INTC), amid deepening antitrust woes for the world's largest computer chip maker.

    Intel, Advanced Micro Devices Inc. (AMD) and several of the world's largest personal-computer makers that buy semiconductors from the two companies have begun to receive subpoenas from the commission, according to a New York Times report.

    In a statement, Intel confirmed it has received a subpoena Wednesday and said it "believes its business practices are well within U.S. law. The evidence that this industry is fiercely competitive and working is compelling." The company cited a 42% decline in microprocessor prices between 2000 and the end of 2007.

    There was no immediate comment from AMD.

    The development comes a day after disclosures that Intel faces a $25.4 million antitrust fine in South Korea.

    AMD has long been lobbying the FTC to investigate Intel, after successfully convincing agencies in Europe, Japan and South Korea to open investigations. AMD contends that Intel uses rebates and other tactics that unfairly exclude AMD from the market for microprocessor chips, which Intel dominates.

    Intel insists that rebates and other incentives it offers PC makers amount to lawful discounts based on the volume of chips its customers buy. Bruce Sewell, Intel's general counsel, criticized Korean regulators and said the company is likely to appeal.

    Meanwhile, the two chip makers prepared to square off in U.S. District Court in Delaware over procedural issues in a private antitrust suit that AMD filed against Intel in 2005. Besides the antitrust allegations by AMD - which have been joined by lawyers representing some Intel shareholders - the opponents are arguing over Intel's production of emails that could become evidence in the case. The case was postponed Thursday until February 2010, as the two sides grapple with a mountain of evidence.

    Intel's shares were down 2.3% midday at $23.33, little changed from their level before the report. Shares of AMD were 1.6% lower midday at $7.65.

    -By Andrew Edwards, Dow Jones Newswires; 201-938-5973; Andrew.Edwards@

    (Evan Ramstad and Don Clark of The Wall Street Journal contributed to this report.)

    (END) Dow Jones Newswires
    06-06-08 1226ET
    Copyright (c) 2008 Dow Jones & Company, Inc.
  2. Down a whole 2.5%..oh the agony
  3. ooooh, Intel gonna get it bad.

    This is just the beginning. Wait until AMD uses this info at its civil trial. It is going to be the mother of all anti-trust suits, and the damages could be staggering, because of punitive and treble damages.

    The Europeans, South Koreans and now Americans have the straight dope on Intel. And AMD is going to be able to use it to great effect.

    Subpoenas are not sent out by the FTC or DOJ lightly in the U.S.

    Bad Intel. Bad.