Legal Library: Cases and Proceedings

The Commission filed an administrative complaint against Intel Corp., the world’s leading computer chip maker, charging that the company had illegally used its dominant market position for a decade to stifle competition and strengthen its monopoly. The complaint alleged that Intel engaged in a course of conduct to shut out rivals’ competing microchips by cutting off their access to the marketplace. In particular, the complaint alleged that Intel unlawfully maintained its monopoly in relevant central processing unit, or CPU, markets, and sought to acquire a second monopoly in the relevant graphics markets, using a variety of unfair methods of competition. In August of 2010, Intel agreed to a settlement containing provisions that would undo the effects of Intel's past conduct, and prohibiting Intel from suppressing competition in the future.

The FTC allowed the $16 billion merger of El Paso Energy Corporation and the Coastal Corporation after requiring the companies to divest their interests in 11 natural gas pipeline systems totaling more than 2,500 miles of pipe. The agreement provides for the divestiture of the proposed Gulfstream pipeline in Florida to a new purchaser - restoring competition to pre-merger levels and assuring future competition for natural gas transportation into the state. The agreement also provides for divestiture of El Paso and Coastal interests in existing natural gas pipelines serving customers in New York State and the Midwest. In addition, it would restore competition in the Gulf of Mexico by requiring the divestiture of seven pipelines and establishing a development fund for the purchaser of El Paso's Green Canyon and Tarpon pipelines to cover the costs of extending these pipelines to specified areas in the Gulf where El Paso and Coastal pipelines are significant competitors. Under the FTC’s Order, El Paso Energy divested certain pipelines in the Gulf of Mexico to Williams Field Services and established a $40 million development fund for Williams to use to build a pipeline or related facility. The Commission later modified its order to remove the requirement that El Paso maintain the development fund.