Intel Corp (INTC)

[Windsock]

Based on the Intel Press Release it does seem there was a rush by the FTC to file the Complaint without a complete investigation. Clearly, there are political considerations behind the filing of a Complaint instead of completing the negotiations with Intel on a Consent Degree.

The administrative hearing by the FTC is not at all like the European Commission proceeding. Intel will receive full strength due process throughout the administrative hearing process under a written set of rules. Intel will also receive a hearing before an ALJ where the FTC must establish its case by presenting evidence and testimony subject to cross examination. Intel will have a fair opportunity to present its defense.

The rules of law governing fair competition are set forth in the many appellate court cases interpreting fair competition and Section 5. Intel will also have the opportunity to appeal an FTC decision to the DC Circuit Court of Appeals. The DC Circuit is definitely not a rubber stamp for the FTC.

The FTC is fully aware that it will have to prove its case before an independent ALJ and justify any decision before the DC Circuit. This knowledge will have a tendency to moderate the FTC thinking in future Consent Decree negotiations with Intel and prevent demands that go beyond existing law. An embarrassing reversal of a litigated decision by the DC Circuit will not serve the political interests of the FTC.