Intel rejects FTC suit as 'misguided'

WASHINGTON: Intel Corp. on Wednesday dismissed as "misguided" a suit filed by the US Federal Trade Commission which alleges the computer chipmaker illegally used its market power to stifle competition.

"Intel has competed fairly and lawfully," the company said in a statement. "Its actions have benefited consumers.

"The FTC's case is misguided," Intel said. "It is based largely on claims that the FTC added at the last minute and has not investigated.

"In addition, it is explicitly not based on existing law but is instead intended to make new rules for regulating business conduct. These new rules would harm consumers by reducing innovation and raising prices," Intel said.

Intel senior vice president and general counsel Doug Melamed said the case "could have, and should have, been settled.

"Settlement talks had progressed very far but stalled when the FTC insisted on unprecedented remedies," Melamed said, adding that they would have made it "impossible for Intel to conduct business."

"The FTC's rush to file this case will cost taxpayers tens of millions of dollars to litigate issues that the FTC has not fully investigated," he said. "It is the normal practice of antitrust enforcement agencies to investigate the facts before filing suit. The Commission did not do that in this case."

The FTC alleged that Intel, which has been facing similar charges in Europe and Asia, has waged a systematic campaign for a decade to shut out competing microchips produced by rivals by cutting off their access to the marketplace.

The FTC is seeking an order from a judge that would prevent Intel from "using threats, bundled prices, or other offers to encourage exclusive deals, hamper competition, or unfairly manipulate (chip) prices."