Ron Schenone

FTC Investigates Intel Again!

Posted by on Jun 23, 2008 | 2 Comments

The people at the FTC must have some kind of a phobia when it comes to investigating Intel. It seems when they get bored, they start on a Intel witch hunt, which usually doesn’t amount to anything. It smacks of when Congress calls in the oil companies to determine if they are making excess profits. Nothing happens in those investigations either.

 

So today when I read of another FTC investigation of Intel, I did a Google and found this from October 2007

 

Source of FTC not wanting to investigate.

 

 

in which the FTC appeared to be slow in investigating Intel once again for unfair tactics against AMD.

 

This story from back in September 1997, in which it stated:

 

For years, chip rivals have complained about the aggressive business practices of Intel, whose chips serve as the central processing ”brain” in more than 80 percent of personal computers. PC makers who use Intel’s chips have at times bridled at their dependence on a single supplier.

 

Source 1997 FTC investigation

 

There are other articles which basically show a pattern of abuses by Intel that usually end up with a hand slapping, but never really address the main issue. That is that large corporations know that they can get away with illegal competition practices since the profits far out weigh any penalty that may be imposed.

 

South Korea just fined the chip maker $25 million for alleged rebate kick backs. But no one has mentioned how much Intel actually made from the illegal activity.

 

So the question is should the FTC even bother investigating Intel? Does anyone really care?

 

Comments welcome.

 

 

  • http://wp3.lockergnome.com/nexus/theoracle/ the oracle

    This is a case exactly like the oil companies, as you said – but you did not give the reason.

    Whenever any of these investigations turns up anything, unless it relates to antional security, it gets dropped. This happens because someone wakes up and realizes that if any fines are levied, the consumer ends up paying it anyway, tacked on as increased costs.

    Another form of punishment needs to be used – like if the decision goes against Intel, they cannot sell any processors for a period of thirty days. Not enough to inconvenience anyone down the supply chain line, but enough ime to put a serious crimp in the flow of money at Intel. SAme with Microsoft, same with any large corporation – unless they are the single supplier.

  • Jerry

    Intel is notoriously greedy, but not much concerned about laws or public opinion. It’s corporate elitism, parading down the avenue like an old hooker who knows that the police won’t bother her. Elitism, cronyism, shameless greed, contempt for the public, these are the hallmarks of Intel and of much of the corporate and political structure of today. How can anyone fight it? Well with Intel it’s perfectly simple, just buy AMD. Why not? There’s nothing to choose between them and they both do the job very well. It was just that little “Intel inside” sticker that created this mindless devotion to Pentium and high prices, and the company continues to work that painted-up, slutty illusion for all it’s worth. Wake up, fellow geeks, and apply some market discipline to this ugly beast. Simply buy AMD until the market equilibrates to a 50-50 status, and then keep it that way. Normal competition will then keep prices in line. Be quiet, Microsoft, you can’t have your little crony company chip prostitute any more.