14 DAY TRIAL // What do you do if your name is Intel, you have an 80% share of the worldwide processor manufacturing market, and you still want more? Well, you promise your customers better prices and larger discounts, on the condition that they don't buy from anybody else. Obviously, the prices for each partner are to be kept secret.
But how long will this scheme work? Well, until an institution, like Fair Trade Commission, takes notice and announces you have 10 days to revise your strategy or legal anti-monopoly measures are to be taken.
Briefly, this is the problem the company faces these days in Japan, where Fair Trade Commission discovered that Intel promised better acquisition prices to five important producers, including Sony and Toshiba, asking them in return to decrease in both number and value the orders to the competition (AMD and Trasmeta).
This practice is even more concerning, as Intel already holds a 90% market share in Japan.
Intel has ten days to decide whether to go or not against FTC's decision, but officially declared that it doesn't hold the FTC intervention justified, as none of the consumers' rights and interests has been prejudiced.
However, if Intel doesn't take into account FTC's recommendation to give up these practices, the next step is taking legal actions against the giant, but it's not very certain yet what these may comprise.
Besides, Intel was in a similar trouble in April 2004, being under investigation for disloyal competition.
Whether or not deciding to attack FTC's decision, Intel will have to unveil details on the discounts operated for every partner in Japan. Which will certainly be a very interesting reading!