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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Intel to end tactics against competition: FTC AFP - 2 hours 14 minutes ago Send IM Story Print Intel to end tactics against competition: FTC WASHINGTON (AFP) - – Computer chip titan Intel has agreed to end "threats" and other tactics aimed at hindering competition, as part of a landmark antitrust settlement announced by the US government Wednesday. The Federal Trade Commission -- a consumer protection and competition watchdog -- approved the deal after charging Intel with illegally stifling competition in the lucrative market for microchips. The FTC had accused Intel of using "threats and rewards" to strong-arm major computer makers such as Dell, Hewlett-Packard and IBM away from chips produced by Intel's rivals. The commission said the settlement "goes beyond those reached in previous antitrust cases against Intel" and "protects competition and not any single competitor" in the computer central processing unit (CPU), graphics processing unit (GPU) and integrated circuit markets. It "prohibits Intel from using threats, bundled prices, or other offers to exclude or hamper competition or otherwise unreasonably inhibit the sale of competitive CPUs or GPUs. "The settlement also prohibits Intel from deceiving computer manufacturers about the performance of non-Intel CPUs or GPUs," the commission said in a statement. Under the deal, Intel will be prohibited from offering deals to computer makers in exchange for their promise to buy chips from Intel exclusively or to refuse to buy chips from others, the FTC said. It will also be barred from retaliating against computer makers that do business with non-Intel suppliers by withholding benefits. "This case demonstrates that the FTC is willing to challenge anti-competitive conduct by even the most powerful companies in the fastest-moving industries," said FTC chairman Jon Leibowitz. "By accepting this settlement, we open the door to competition today and address Intel's anti-competitive conduct in a way that may not have been available in a final judgment years from now," Leibowitz said. The FTC does not have powers to fine the company unless it violates the terms of the settlement. "If Intel violates this order, we'll be there to enforce it and we won't hesitate to fine for violations," Leibowitz said. In December, the FTC sued Intel, accusing the world's biggest chip maker of waging a campaign to shut out rivals that harmed consumers. The chips are critical components that are often referred to as the "brains" of a computer. Intel produces some 80 percent of the microprocessors used in personal computers worldwide. Intel said the settlement "expressly states that Intel does not admit either any violation of law or that the facts alleged in the complaint are true." "This agreement provides a framework that will allow us to continue to compete and to provide our customers the best possible products at the best prices," said Doug Melamed, Intel senior vice president and general counsel. "The settlement enables us to put an end to the expense and distraction of the FTC litigation," it added. European Union antitrust regulators fined Intel a record 1.45 billion dollars last year, claiming it abused its stranglehold on the semiconductor market to crush rival Advanced Micro Devices. The settlement announced Wednesday also will require Intel to "modify its intellectual property agreements" with AMD as well as graphic specialist Nvidia, and general chip builder Via. The FTC said changes to those deals would allow "those companies have more freedom to consider mergers or joint ventures with other companies, without the threat of being sued by Intel for patent infringement." Nvidia said it backed the FTC action. "Any steps that lead a more competitive environment for our industry are good for the consumer," the firm said in a statement. The agreement is subject to a 30-day public comment period and final approval by the commission. 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