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Technology Stocks : Intel Corporation (INTC)
INTC 47.14-6.1%Feb 10 3:59 PM EST

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To: vinod Khurana who wrote (33578)10/2/1997 1:24:00 PM
From: vinod Khurana   of 186894
 
FTC probe of Intel seen targeting three areas

SAN FRANCISCO (Wired) - A Federal Trade Commission inquiry into Intel Corp. will focus on marketing,
chipmaking tactics and the company's defense of a patent-infringement suit brought by Digital Equipment Corp., the San
Jose Mercury News reported Wednesday.

The newspaper said the agency is examining company rebates to PC-makers that affixed the 'Intel Inside' logo on their
machines. For some companies, the Mercury News said, this payment was key to turning a profit.

Also under scrutiny is an Intel chip redesign that may have made competitors' processors harder to sell to PC-makers.

Analysts have been expecting little serious damage to result from the federal antitrust investigation unveiled last
Wednesday.

Intel is a powerful force in the $150 billion semiconductor industry, with Intel chips installed in about 80 percent of
personal computers around the world. But analysts were skeptical about any overtly anti-competitive behavior on its
part.

"They are big and successful and they got a bunch of people complaining about them. But I've seen nothing that would
make me say, 'This is going to be a big problem for them,"' said Charles Rule, former head of the antitrust division at the
Justice Department.

Intel said only that the Federal Trade Commission had begun a broad investigation to see if Intel was unfairly restricting
competition in the chip business. The company said it did not know what had triggered the investigation. The FTC
declined to confirm or deny that it was investigating Intel.

The probe is the FTC's second of Intel this decade. In 1993, it brought no action after a two-year investigation, and the
same thing is likely to happen again, experts said.

The agency has stepped up its scrutiny of businesses in recent years but it is still considered difficult for the government to
take companies to court in antitrust cases.

(Reuters/Wired)
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