FTC Hits Intel With Antitrust Suit

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The Federal Trade Commission filed suit Wednesday against Intel Corp., charging the chip maker with using its dominant market position to illegally stifle competition.

The lawsuit was expected, but the complaint raised new issues that had antitrust lawyers talking. The FTC charged the case under §5 of the FTC Act, which is broader, more malleable and less tested than the more frequent choice, §2 of the Sherman Act, said David Meyer, co-chairman of Morrison & Foerster’s antitrust practice, who was not involved in the case.

“The commission’s choice to bring this case under §5 and, in part, some the statements by commissioners [Thomas] Rosch and [Jon] Leibowitz, plainly reflects a desire to get around the limitations and the recent trends of §2 case law,” Meyer said.

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