الخميس، 5 أغسطس 2010

[caption id="" align="alignleft" width="240" caption="Intel has been accused for some time of stifling competition by using unethical business practices; photo credit: Adikos"]Heat Sink[/caption]

Apparently, bullying is not only relegated to the proverbial school yard play grounds, but it is part of the corporate business culture, as being reported by Bloomberg Business Week.

The corporate bully is this case - which was chastised by the Federal Trade Commission (FTC) - is Intel. The number one chip maker in the world was reportedly in the habit of threatening, retaliating, and bullying customers from purchasing chips from competitors like AMD and Nvidia.

Intel was charge in breaching United States antitrust laws and fined by the FTC. The settlement covers graphics chips, central processors, and chip sets. The meat of the agreement also compels Intel not to give computer makers any discounts or other incentives in exchange for promises that its' customers will purchase chips exclusively from Intel; nor can the chip maker withhold these perks from customers that also buy from Intel's competitors. However, Intel can still offer volume discounts and match rivals' price cuts.

Of import to Intel’s competitors, especially AMD, is that part of the settlement agreement, which requires Intel to change agreements with Advanced Micro Devices (AMD), Nvidia (NVDA), and Via Technologies in Taiwan. So, the chipmakers can enter into mergers and joint ventures with other companies without fearing a patent infringement lawsuit from Intel.

Intel has said via its spokesman that it hasn’t admitted to the charges alleged or the facts alleged in the FTC’s case. It must be noted that the FTC’s decision to punish Intel was unanimous - the votes were 4-0.

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