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To: Chris Anderson who wrote (14025)	2/19/1998 7:52:00 PM
From: Mang Cheng	Read Replies (2) \| Respond to of 45548

Interesting Intel anti-trust article : "Will Intel clear FTC ? " "There are two general potential violations where a case against Intel for antitrust law could be brought against Intel, sources have said. First, some have said Intel has extracted demands out of customers because of its dominant market share. "Barrett implicitly scoffed at this notion and asserted that Intel takes extraordinary steps to ensure compliance with antitrust laws. "I'm not sure what the government is excited about. There are aspects of behavior...writing contracts that demand certain behavior...we are educating employees not to do that." Second, Intel could find itself on the hot seat if it's discovered that it has used its increasing dominance in semiconductors to get into and dominate outside markets. Intel has a history of successfully invading ancillary markets. For instance, the company became the dominant player in PC chipsets nearly overnight. Graphics chipmakers fear a similar encroachment on their terrority, and some have been contacted by the FTC. Using dominant market share in one market to get into another can be deemed illegal under antitrust law, depending on the means used. Barrett countered by stating that the ordinary cycle of "innovate and integrate" in the semiconductor industry can and should not be interrupted. Typically, new capabilities, such as 2D graphics, come out on separate accelerator cards. Eventually, these innovations are incorporated into the microprocessor. Manufacturers should be allowed to continue on this process, he asserted. Again, Barrett also stated that the company trains employees in antitrust law. news.com Mang