Intel battles antitrust charges

Intel has hit back at antitrust charges filed against it by the Federal Trade Commission in the US, claiming there is still no proof that the chipmaker caused harm to competition in the microprocessor market.

The FTC has charged Intel with using its power to hold back vital technical information from three of its customers: workstation manufacturer Integraph, computer and services supplier Digital Equipment and PC manufacturer Compaq.

Intel controls 90 per cent of the chip market for PCs, networking and communication products, and the information is vital for the development of future products and technologies.

The charge that the chipmaker "used its monopoly power to cement its dominance over the microprocessor market" came after all three companies refused to license patents to the chip giant, and follows a nine-month investigation into the chipmakers' business practices.

William Baer, head of the FTC's department dealing with competition, claimed Intel used its monopoly to stifle competition and new technologies.

He said Intel should not be allowed to use its muscle to stop companies from protecting their own intellectual properties.

But Intel vice-president and general counsel, F Thomas Dunlap, said: "Although the key legal requirement of antitrust cases is that a company be shown to have caused harm to competition, the FTC is unable to show harm to competition in any market."

Dunlap said Intel would work through the administrative complaint process and "if necessary appeal to a federal court" to overrule the case.

Intel has cut prices of many of its microprocessor chips by 12 to 32 per cent, and announced the introduction of several new chips over the next year. The move is expected to boost Intel's performance at the lower end of the PC market.