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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?


To: Charlie Tuna who wrote (4462)10/28/1997 11:27:00 PM
From: Mason Barge  Read Replies (1) | Respond to of 11555
 
<< Could Intel get away with dumping as they are not a foriegn company? Any experts on anti dumping laws?>>

This isn't a dumping question, and your problematic assumption is correct -- "anti-dumping" is a foreign trade issue. Intel could sell all the chips it wants as cheap as it wants -- "dumping" as such is mostly permissible in the US.

However, if they continue to manufacture the chip and sell it at a loss in order to hammer IDT/AMD/Cyrix, they face a possible violation of the antitrust laws, which have very stiff penalties and which the Justice Dept. would be quite likely to prosecute in this situation, given Intel's enormous market share. In fact, they just about can't do it. As a practical matter, they will have to concede maybe 25-40% of the market.