So if the EU and the State of New York didn’t cause Intel’s legal department enough grief, the feds are going to. The Federal Trade Commission has filed suit against Intel claiming the following:
The FTC’s administrative complaint charges that Intel carried out its anticompetitive campaign using threats and rewards aimed at the world’s largest computer manufacturers, including Dell, Hewlett-Packard, and IBM, to coerce them not to buy rival computer CPU chips. Intel also used this practice, known as exclusive or restrictive dealing, to prevent computer makers from marketing any machines with non-Intel computer chips.
In addition, allegedly, Intel secretly redesigned key software, known as a compiler, in a way that deliberately stunted the performance of competitors’ CPU chips. Intel told its customers and the public that software performed better on Intel CPUs than on competitors’ CPUs, but the company deceived them by failing to disclose that these differences were due largely or entirely to Intel’s compiler design.
That’s gotta make Intel’s top brass nervous. The FTC wants to fix this by preventing Intel from using threats, bundled pricing, and other tactics to hamper competition or manipulate prices. Intel for its part had this to say:
“Intel has competed fairly and lawfully. Its actions have benefitted consumers. The highly competitive microprocessor industry, of which Intel is a key part, has kept innovation robust and prices declining at a faster rate than any other industry. The FTC’s case is misguided. It is based largely on claims that the FTC added at the last minute and has not investigated. In addition, it is explicitly not based on existing law but is instead intended to make new rules for regulating business conduct. These new rules would harm consumers by reducing innovation and raising prices.”
As usual, the lawyers will fight this out in court and and they’ll collect big cheques. We’ll see what the FTC, Intel, and the consumers get at the end of this.
Intel Buys McAfee…. Will Their Processors Now Be As Slow As McAfee Anti-Virus?
Posted in Commentary with tags Intel, McAfee on August 19, 2010 by itnerdOkay. I have a question. Why would Intel who makes microprocessors buy McAfee who makes anti-virus and security software for $7.7 billion? After all, there isn’t an clear synergy between the two. I’ll let Intel themselves explain why this makes sense to them:
The acquisition reflects that security is now a fundamental component of online computing. Today’s security approach does not fully address the billions of new Internet-ready devices connecting, including mobile and wireless devices, TVs, cars, medical devices and ATM machines as well as the accompanying surge in cyber threats. Providing protection to a diverse online world requires a fundamentally new approach involving software, hardware and services.
Inside Intel, the company has elevated the priority of security to be on par with its strategic focus areas in energy-efficient performance and Internet connectivity.
Okay. I guess that makes sense. But McAfee Anti-Virus is a great way to slow down your computer. Does that mean that the next Intel processor I get can be expected to do the same? I hope not. So given their rather crappy track record, couldn’t Intel have bought something that’s actually worth the $7.7 billion? Surely there’s other anti-virus vendors who make better stuff that would have cost them a fraction of what they paid for McAfee.
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