Contrition
Reuters is reporting that Intel has arrived at a preliminary settlement with the US Federal Trade Commission (FTC), to conclude the FTC action initiated against it for anti-competitive business practices last December.
While predicting a settlement is no great scoop, considering the deadline for reaching one is 22 July, the report reveals the deal is likely to see Intel avoid yet another fine, so long as it extends the restrictions placed on its business practices in the conclusion of AMD's case against it.
In essence, owning the vast majority of the global CPU market puts Intel in a position to use that influence to distort markets and restrict what little competition there is. AMD, the FTC and pretty much everyone else don't want this to happen - hence all the grief Intel has been getting. In the AMD case, the practice of rewarding OEMs that minimised their involvement with AMD came under scrutiny.
Apparently the FTC doesn't issue fines unless an existing settlement has been violated, so a fine was never likely in this case. What it will do is cement the parameters within which Intel can operate in future - especially regarding how it interacts with OEMs.
Neither the FTC or Intel had any comment for Reuters. Intel's share price was up 2.7 percent yesterday, but down 1.3 percent in pre-market trading at time of writing.
