WASHINGTON — Members of the Federal Trade Commission disagree on the fundamental question of whether Intel Corp. possesses a monopoly of the market for general-purpose microprocessors, according to comments released by the agency today (April 15).
The statements nevertheless indicate that the FTC will vote soon to approve the proposed deal to settle the antitrust case the FTC had filed against Intel.
The issue of whether Intel's actions in the microprocessor market should be curbed is at the heart of a proposed settlement, announced March 8, one day before a scheduled antitrust hearing. FTC attorneys argued that Intel holds monopoly power, but decided to settle the antitrust case. Under the proposed consent decree, Intel will agree to stop withholding technical data about its microprocessors designs sought by Compaq Computer Corp. and its subsidiary, the former Digital Equipment Corp., and by Intergraph Corp.
The agreement has been open for public comment since March 17.
In a joint statement, FTC chairman Robert Pitofsky and Commissioners Sheila Anthony and Mozelle Thompson endorsed the proposed settlement as "a remedy that addresses serious potential competitive harm without significantly hindering Intel's legitimate business activity."
They added that the government's case against Intel remains unproven, "but the allegations are consistent with our knowledge of the industry and with common sense."
They said the consent decree supports "the climate of innovation that benefits both industry and consumers."
Commissioner Orson Swindle challenged the allegation that Intel is a monopolist, arguing that it faces greater competition at the low end of the PC market. "There is no doubt that Intel has long bestrode the market for general-purpose microprocessors," Swindle said, "but there has also been reason to ask whether Intel's position in the market is as unassailable as the [FTC] complaint suggests."
Swindle added that "available information has not dispelled my questions about whether Intel has monopoly power — as opposed to just an extremely large market share — in general-purpose microprocessors."
Observers said today's statements strongly indicate that the FTC will vote to accept the proposed settlement.
The comment period on the Intel consent decree ends May 24. The Commission is expected to vote shortly thereafter on whether to accept the settlement.
