Every Firm In D.C. Works on Intel Settlement

Few rivalries have ever produced as much legal work as the one between chip-making giants Intel and Advanced Micro Devices (AMD). The companies settled the antitrust case AMD brought against Intel last year, and that came shortly after Intel agreed to pay a $1.45 billion fine to the European Commission in another antitrust matter. And today comes news that Intel, advised in some capacity by no fewer than five law firms, agreed to change its marketing practices in order to settle a separate complaint with the Federal Trade Commission, according to court records and this wrap-up in the Wall Street Journal.

The allegations center on improper means Intel used to guarantee that major computer manufacturers, including Dell and Hewlett-Packard, would buy Intel processors instead of processors offered by AMD and other competitors. Intel offered rebates, discounts, and bundled prices, and they weren’t above using threats, either, according to the WSJ and various court records. (Dell also demanded payments from Intel, and Dell agreed last month to pay $100 million to settle the SEC’s case against it related to the Intel payments.) Intel also played hardball with its intellectual property, court records show.