Intel

This antitrust matter concerning allegations of conduct aimed to obtain and maintain monopoly power in the market for computer semiconductors is proceeding in the United States District Court for the District of Delaware.

The plaintiffs allege that Intel engaged in a decade-long series of anticompetitive acts that stifled and eliminated competition or entry into the microprocessor market. Specifically, Intel has forced major original equipment manufacturer (“OEM”) customers such as Dell, Hewlett Packard, IBM/Lenovo, NEC and others into exclusive or near-exclusive deals denying OEMs the ability to purchase processors from other microprocessor manufacturers (particularly AMD). The alleged result of this conduct has been a slowed rate of technical progress in the development of microprocessors as well as higher prices for Intel’s products which have been passed along to the ultimate buyers of these chips – computer purchasers.

Plaintiffs seek to recover the illegal monopoly overcharge that has been paid by end users of Intel products -- as embedded in the price of their computers -- that have resulted from Intel’s unlawful conduct.

On July 12, 2007, the court issued an order largely denying Intel’s motion to dismiss the complaint, upholding almost all of the plaintiffs’ claims and allowing the case to proceed.

Parties in the related matter, AMD v. Intel Corp. have settled their dispute, with Intel paying $1.25 billion to AMD. On May 13, 2009, the European Commission fined Intel a record $1.45 billion for abusing its dominance in the computer chip market. In late 2009, the State of New York and the Federal Trade Commission filed complaints against Intel alleging violations of the Sherman Act and of the Federal Trade Commission Act based upon broadly the same conduct as plaintiffs allege here. Plaintiffs’ motion for class certification will be fully briefed in early 2010.