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Saturday, June 6, 1998

Federal trade panel set to vote on Intel suit 

David Lawsky  
Washington, June 5: The Federal Trade Commissionon has set a meeting for noon (1600 GMT) on Monday, June 8, to vote on antitrust action against Intel Corp, the dominant producer of personal computer microprocessors.

The FTC's official "sunshine phone" recorded message announced the meeting had been set to consider "enforcement action." A source had earlier told Reuters the five commissioners would vote early next week on the Intel matter.

The FTC will vote on whether to bring a suit alleging that Intel illegally misused monopoly power to force others to give up their trade secrets and cooperate with Intel.

The case is being considered as the justice department and 20 states are pursing major antitrust actions against Microsoft Corp, which together with Intel dominates the computer industry.

Intel, of Santa Clara, California, makes the microprocessors that run four out of five personal computers. In April, the FTC alleged in a different case that Intel had "market power" -- that is, a monopoly -- inmicroprocessors.

That earlier case was settled the same day it was announced, but the FTC made clear at the time that an investigation of the company was continuing.

Intel does not dispute its actions against such companies as the Intergraph Corp and Digital Equipment Corp, both of which make computers. But Intel said it had acted within the law.

With few facts in dispute, the suit would settle that legal disagreement.If the commission votes to bring the charges, a course of action that has been recommended by its staff, neither the Federal Trade Commission chairman Robert Pitofsky nor other members of the commission will comment because they may later be involved in the case.

The reason is that the commission is expected to refer the matter to an administrative law judge who is independent but works for the FTC.

In such cases, the administrative law judge's decision maybe appealed to the full commission and, after that, to a US Court of Appeals.

Because the commissioners, who vote in the firstplace to bring such charges, could later be sitting as judges in the same matter they do not comment.

The charges, if they are to be brought, will be discussed by William Baer, the FTC's top staff litigator.

(Reuters)

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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