Intel FTC Case ‘Overblown,’ Says Analyst

“The lawsuit filed by the Federal Trade Commission against Intel
is “overblown” and won’t lead to much of anything beyond perhaps a
settlement, argues one market analyst following the case.

“The FTC’s case is multi-faceted, taking on Intel for alleged
anticompetitive behavior, but also taking it to task for its x86
licensing terms and practices. The FTC’s suit came after Intel had
fought and lost similar allegations in Japan, Korea and Europe, the
latter hitting Intel with a $1.45 billion fine (Intel is
appealing).

“The FTC has already stated it has “no goal of breaking up
Intel,” but the FTC does want Intel to simplify the licensing terms
for its x86 instruction set. Broadpoint AmTech analyst Doug
Freedman said there is little chance the courts will force Intel
(NASDAQ: INTC) to license its x86 technology. At that point,
Freeman said in a research note he believes the FTC will be forced
to settle for something less.”

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