FTC Subpoenas Intel |
6/6. Intel announced in a
release that the Federal Trade Commission
(FTC) on June 4 "served a subpoena related to Intel's business practices with
respect to competition in the microprocessor market." See also, Intel's
Form 8-K filed with the Securities and
Exchange Commission (SEC) on June 6, 2008.
Intel's release continues that "Since 2006 Intel has been working closely
with the FTC on an informal inquiry into competition in the microprocessor
market and has provided the commission staff with a considerable amount of
information and thousands of documents. By proceeding to a subpoena, the
Commission will be able to obtain not only information that Intel has already
committed to provide but also information from other parties. Consistent with
its standard practice Intel will work cooperatively with the FTC staff to comply
with the subpoena and continue providing information."
Intel added that it "believes its business practices are well within U.S.
law. The evidence that this industry is fiercely competitive and working is
compelling. For example, prices for microprocessors declined by 42.4 percent
from 2000 to end of 2007. When competitors perform and execute the market rewards them.
When they falter and under-perform the market responds accordingly."
Al Foer, head of the American Antitrust Institute (AAI), praised the FTC action. He
stated in a release
that this is a "landmark monopolization case".
The AAI's interests are aligned
with those of the plaintiffs' antitrust bar.
Ed Black, head of the Computer and
Communications Industry Association (CCIA), stated in a
release that "This is a very positive development". He noted that the
European Union has also opened and investigation of Intel, and that Korea has
recently fined Intel.
Black continued that "Now, the most influential antitrust authorities from
North America, Europe and Asia have either opened a formal investigation or
already ruled against Intel. It is good to see antitrust agencies from around
the world committed to fair competition in the high tech arena."
He also said that "The extremely high start-up and capital expenditure costs
associated with the microprocessor market make new entry into this market very difficult if
not impossible. It is essential that action be taken while viable competitors still
exist."
On July 27, 2007, the European Commission (EC) announced in a
release that it "has sent a Statement of Objections (SO) to Intel on 26th July 2007.
The SO outlines the Commission's preliminary view that Intel has infringed the EC Treaty
rules on abuse of a dominant position (Article 82) with the aim of excluding its main rival,
AMD, from the x86 Computer Processing Units (CPU) market." See, story titled
"European Commission Initiates Proceeding Against Intel Alleging Anticompetitive
Behavior" in TLJ Daily
E-Mail Alert No. 1,617, July 27, 2007.
On January 10, 2008, the Office of the Attorney General of the state of New York
announced in a release
that it has "served a wide-ranging subpoena seeking documents and information on Intel
Corporation". See, story titled "New York Announces Investigation of Intel"
in TLJ Daily E-Mail Alert No.
1,700, January 15, 2008.
Intel's June 6 SEC Form 8-K also states that the
Korea Fair Trade Commission (KFTC) "has ruled
that Intel Corporation (`Intel´´) has violated Korean antitrust laws on two counts of ``abuse
of dominance.´´ The Commission fined Intel approximately $25.4 million (26 billion Korean
won). Intel representatives have stated that the company is extremely disappointed by the
decision of the KFTC and believes that the ruling represents an outcome that will dampen,
not enhance, the price competition that has resulted in lower prices for customers and
consumers."
This Form 8-K adds that Intel "will review the ruling and it is presently expected
that Intel will request a further review from the KFTC and, if it proves necessary, an appeal
which will permit a Korean court to review the case in its entirety and reach
its own decision in the matter."
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Barnett Addresses Sherman Section 2
Remedies |
6/4. Thomas Barnett, Assistant
Attorney General in charge of the Department of Justice's
(DOJ) Antitrust Division, gave a
speech in
Charlottesville, Virginia, titled "Section 2 Remedies: What to Do After Catching
the Tiger by the Tail".
The entire speech built upon the metaphor of wild tigers.
Barnett (at right) said that "it is in
the nature of successful firms, like tigers,
to pounce and devour, and to deprive other hunters of their prey. I prefer to watch tigers
and successful firms -- even dominant firms -- from a safe distance and without interfering
with their natural activities, confident that any harm they visit on competitors will -- in
general -- redound to society's benefit."
But, he continued, "Dominant firms also resemble tigers in that powerful animals can
inflict great damage that sometimes should be prevented. Economic theory provides a sound
basis for believing that firms can injure the competitive process by acquiring or maintaining
monopoly power through anticompetitive means. And so we should seek to identify when and how
government intervention is justified and will prove beneficial."
He then stated that there are situations where, even though there is a violation, the
government should not intervene. For example, "a bad section 2 remedy risks
hurting consumers and competition and thus is worse than no remedy at all".
Also, he said that "certain kinds of conduct appearing to harm competition have
proven themselves beyond the limits of effective antitrust control".
He identified bundled discounts as one possible example. He did not mention any companies
or industry sectors. However, bundled discounts are used in the telecommunications and
information technology sectors, such as in triple play offerings of voice, broadband, and
video. See, story
titled "9th Circuit Rules on Application of Antitrust Law to Bundling Discounts"
in TLJ Daily E-Mail
Alert No. 1,634, September 5, 2007.
He said that "Because price competition is so close to the heart of the competitive
process that our antitrust laws seek to foster, I am not sanguine about section 2's
prospects for appropriately remedying other forms of price competition posing theoretical
harm to consumers absent clear, cost-based liability standards. In particular, there may be
areas of bundled discounting and single-product loyalty discounts where any theoretical harm
from above-cost discounting is beyond the practical ability of courts to remedy through
antitrust litigation, much as above-cost pricing is in the context of predatory
pricing."
Barnett also reiterated points that he has made in other speeches. For example, he said
that "it is important always to keep in mind that the goal of catching the tiger is to
protect competition, not competitors". Also, citing the Supreme Court's 2004
opinion
[22 pages in PDF] in Verizon v. Trinko, he said that "equitable remedies
should not interfere with the defendant's innovation incentives going forward".
See also,
story titled "Supreme Court Holds That There is No Sherman Act Claim in
Verizon v. Trinko" in in
TLJ Daily E-Mail
Alert No. 815, January 14, 2004.
He also used the U.S. Court of Appeals' (DCCir) 2001
opinion
in US v. Microsoft, 253 F.3d 34, as the basis for a counseling against
remedies that restructure markets. He said that "A finding that section 2 has
been violated does not open the door to wholesale restructuring of a market.
Instead, the remedy needs to be tied closely to the anticompetitive conduct
occasioning it. That means that remedies need to be sufficient but not
overbroad, proportional to the offense. Implementing a remedy that is too broad
runs the risk of distorting markets, impairing competition, and prohibiting
perfectly legal and efficient conduct."
He also said, referencing Microsoft litigation, that the government should
consider private litigation. He said that "My final point tonight is that it is
worth asking whether anyone else is trying to catch the tiger. Congress has
established an overall antitrust regime in which private plaintiffs as well as
others have the right to bring section 2 claims in addition to the federal
government. Thus, in addressing questions such as whether civil fines should be
available for government section 2 cases, it is relevant to consider the
complete picture. As one example, I do not have precise figures, but public
reports indicate that Microsoft has paid billions of dollars to resolve private
litigation involving claims that followed on from the Division's case."
He did not discuss the private litigants' reliance upon the res judicata
effects of the judgment in the governments' case against Microsoft.
Section 2 of the Sherman Act, which is codified at
15
U.S.C. § 2, provides in full that "Every person who shall monopolize, or attempt to
monopolize, or combine or conspire with any other person or persons, to monopolize any part
of the trade or commerce among the several States, or with foreign nations, shall be deemed
guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding
$100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not
exceeding 10 years, or by both said punishments, in the discretion of the court."
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People and Appointments |
6/5. President Bush named Thomas Bossert to be Deputy Assistant to the
President for Homeland Security.. See, White House
release.
6/5. President Bush named Pete Patterson to be Associate Counsel to
the President. See, White House
release.
6/5. President Bush announced his intent to appoint Wayne Paugh to be Coordinator
for International Intellectual Property Enforcement (CIIPE) at the Department of Commerce
(DOC). He is currently Senior Advisor and acting CIIPE. See, White House
release.
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About Tech Law Journal |
Tech Law Journal publishes a free access web site and
subscription e-mail alert. The basic rate for a subscription
to the TLJ Daily E-Mail Alert is $250 per year. However, there
are discounts for subscribers with multiple recipients. Free one
month trial subscriptions are available. Also, free
subscriptions are available for journalists,
federal elected officials, and employees of the Congress, courts, and
executive branch. The TLJ web site is
free access. However, copies of the TLJ Daily E-Mail Alert are not
published in the web site until one month after writing. See, subscription
information page.
Contact: 202-364-8882.
P.O. Box 4851, Washington DC, 20008.
Privacy
Policy
Notices
& Disclaimers
Copyright 1998-2008
David Carney,
dba Tech Law Journal. All rights reserved. |
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Washington Tech Calendar
New items are highlighted in red. |
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Monday, June 9 |
The House will meet at 12:30 PM for morning
hour debate, and at 2:00 PM for legislative business. Votes will be postponed until
6:30 PM. The House will consider numerous non-technology related items under
suspension of the rules. See, Rep. Hoyer's
schedule for week of June 9, and
schedule
for June 9.
The Senate will meet at 3:15 PM. It will
resume consideration of the motion to proceed to S 3044
[LOC |
WW],
the "Consumer-First Energy Act of 2008", a bill regarding taxation and price
regulation in the energy sector.
8:30 AM - 5:00 PM. Day one of a two day meeting of the
Judicial Conference of the United
States' Committee on Rules and Practice and Procedure. See,
notice in the Federal Register, March 25, 2008, Vol. 73, No. 58, at Pages
15777-15778. Location: Thurgood Marshall Federal Judiciary Building, Mecham
Conference Center, One Columbus Circle, NE.
8:30 - 11:00 AM. The
Technology Policy Institute
and the Centre for European Policy Studies will host an event titled "Transatlantic
Perspectives on Broadband Policy: Inter- versus Intra-Platform Competition".
David Gross (Department of State) will speak at 9:00 AM. See,
notice. Location:
National Press Club, 13th floor, 529 14th
St., NW.
11:30 AM. Patrick Ross and Lucinda Dugger (Copyright Alliance) will host a
conference call to announce an "initiative for artists and creators". To
participate, call 1-800-351-4894. The passcode is 29012. RSVP to Gayle
Osterberg at gayle at 133publicaffairs dot com to receive pre-conference
copies of releases.
12:00 NOON. Kyle McSlarrow, head of the
National Cable and Telecommunications
Association (NCTA), will give speech titled "Cable Broadband's
Platform: Innovation for the Consumer". RSVP to Pam Ford at 202-222-2356.
Lunch will be served. Location: National Press
Club, Lisagor Room, 13th floor, 529 14th St., NW.
5:00 PM. Deadline to submit comments to the
National Telecommunications and Information
Administration (NTIA) in response to it notice of proposed rulemaking regarding its
Digital To Analog Converter Box Coupon Program. The NTIA proposes to waive the
eligible household and application requirements for individuals residing in nursing homes
or other senior care facilities. See,
notice in the Federal Register,
April 24, 2008, Vol. 73, No. 80, at Pages 22120-22124. See also,
NTIA web
page with hyperlinks to comments.
Deadline to submit comments to the
Department of Homeland Security (DHS) in response to its
request for comments regarding its
interim final rule
[48 pages in PDF] that extends the period of
Optional Practical Training (OPT)
from 12 to 29 months for qualified F-1 non-immigrant students. This rule change compensates
in a limited way for the Congress's failure to enact legislation to increase the annual cap
on the number of H1B visas. See, story titled "DHS Extends OPT to 29 Months As
Congress Sits on H1B Reform Proposals" in
TLJ Daily E-Mail Alert No.
1,742, April 7, 2008, and
notice in the Federal
Register, April 8, 2008, Vol. 73, No. 68, at Pages 18944-18956.
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Tuesday, June 10 |
The House will meet at 9:00 AM for morning hour
debate, and at 10:00 AM for legislative business. The House will consider
numerous non-technology related items under suspension of the rules. See, Rep. Hoyer's
schedule for week of June 9.
8:00 AM - 5:00 PM. Day one of a two day meeting of the
National Institute of Standards and Technology's
(NIST) Visiting Committee on Advanced Technology (VCAT) titled "NIST's
Roles in the Innovation Ecosystem". See,
notice in the
Federal Register, May 6, 2008, Vol. 73, No. 88, at Page 24950. Location: NIST,
Administration Building, Employees Lounge, Gaithersburg, MD.
8:30 AM - 3:00 PM. There will be a one day
conference titled "PointSmart.ClickSafe: Summit on Children’s Online Safety
and Literacy". The speakers will include FCC
Commissioners Deborah Tate
and Jonathan Adelstein
and Sen. Mark Pryor (D-AR). Location:
L’Enfant Plaza Hotel, 480 L'Enfant Plaza, SW.
8:30 AM - 5:00 PM. Day two of a two day meeting of the
Judicial Conference of the United
States' Committee on Rules and Practice and Procedure. See,
notice in the Federal Register, March 25, 2008, Vol. 73, No. 58, at Pages
15777-15778. Location: Thurgood Marshall Federal Judiciary Building, Mecham
Conference Center, One Columbus Circle, NE.
9:00 AM. The House Judiciary
Committee's (HJC) Subcommittee on Immigration will hold a hearing titled
"Electronic Employment Verification Systems: Needed Safeguards to Protect Privacy
and Prevent Misuse". See,
notice.
The witnesses will include Jonathan Scharfen,
acting Director of the U.S. Citizenship and Immigration Services. The HJC
will webcast this hearing. Location: Room 2141, Rayburn Building.
9:30 AM. The House
Commerce Committee's (HCC) Subcommittee on Telecommunications and the Internet will
hold a hearing titled "Status of the DTV Transition: 252 Days and Counting".
This hearing will be webcast by the HCC. Location: Rooom 2123, Rayburn Building.
9:30 AM - 12:00 NOON. The Securities
and Exchange Commission (SEC) will host an event titled "International
Roundtable on Interactive Data for Public Financial Reporting". See,
notice. Location: SEC,
100 F St., NE.
10:00 AM.
Henry Paulson
(Secretary of the Treasury) will give a speech titled "U.S. China Economic
Relations". The Department of the Treasury's notice states that "Media must
register in advance with Trent Perrotto at 202-939-2372" or tperrotto at ceip dot
org." Location: Carnegie Endowment for
International Peace, 1779 Massachusetts Ave., NW.
6:00 - 8:15 PM. The Federal
Communications Bar Association (FCBA) will host an event titled "Judicial Year
in Review". The speakers will be
Sam Feder (Jenner and Block),
Ian Gershengorn (Jenner & Block),
Andrew McBride (Wiley
Rein), Joseph Palmore (Federal Communications Commission) and Richard Welch (FCC). This
event qualifies for continuing legal education (CLE) credits. See,
notice. Location: Wiley Rein, 1776 K
St., NW.
CANCELLED. The U.S.
Patent and Trademark Office's (USPTO) Trademark Public Advisory Committee
(TPAC) will meet.
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Wednesday, June 11 |
The House will meet at 10:00 AM for legislative
business. See, Rep. Hoyer's
schedule for week of June 9.
9:00 AM - 12:00 NOON and 1:30 - 4:00 PM. The
Department of Homeland Security's (DHS)
Data
Privacy and Advisory Committee will meet. There will be panels on E-Verify
and the Information Sharing Environment. See, DHS
notice [PDF]. Location: Hilton Arlington Hotel, Galleries I & II, 950
North Stafford St., Arlington, VA.
9:00 - 11:45 AM. Day two of a two day meeting of the
National Institute of Standards and Technology's
(NIST) Visiting Committee on Advanced Technology (VCAT) titled "NIST's
Roles in the Innovation Ecosystem". See,
notice in the
Federal Register, May 6, 2008, Vol. 73, No. 88, at Page 24950. Location: NIST,
Administration Building, Employees Lounge, Gaithersburg, MD.
12:00 NOON - 2:00 PM. The DC Bar
Association will host a program titled "Entertainment Law in Review".
The price to attend ranges from $20 to $30. The speaker will be
Stan Soocher
(University of Colorado at Denver). For more information, contact 202-626-3463. See,
notice. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.
2:00 PM. The
Senate Judiciary Committee (SJC) will hold a hearing on four judicial
nominations: Paul Gardephe (to be a Judge of the
U.S. District Court for the
Southern District of New York), Kiyo Matsumoto (U.S.D.C.,
Eastern District of
New York), Cathy Seibel (U.S.D.C., Southern District of New York), and Glenn
Suddaby (U.S.D.C., Northern District of New York). See,
notice.
Location: Room 226, Dirksen Building.
2:00 PM. The House
Judiciary Committee's (HJC) Subcommittee on Courts, the Internet and
Intellectual Property (SCIIP) will hold a hearing on HR 4789
[LOC |
WW], the
"Performance Rights Act". See, stories titled "Bills
Introduced in House and Senate to End Terrestrial Broadcasters' Performance
Right" in TLJ
Daily E-Mail Alert No. 1,690, December 18, 2007, and "Paper Advocates
Performance Right for Recording Artists" in
TLJ Daily E-Mail
Alert No. 1,724, February 27, 2008. The HJC will webcast this hearing. See,
notice. Location: Room 2141,
Rayburn Building.
TIME CHANGE. 3:00 PM. The
Senate
Commerce Committee (SCC) will hold a hearing titled "Impact and
Policy Implications of Spyware on Consumers and Businesses". This hearing
will also pertain to S 1625
[LOC |
WW], the
"Counter Spy Act". The witnesses will be Eileen Harrington
(Deputy Director of the FTC's Bureau of Consumer Protection),
Benjamin Edelman (Harvard Business
School), Marc Rotenberg (Electronic Privacy Information
Center), Arthur Butler (Americans for Fair Electronic
Commerce Transactions), Vincent Weafer (Symantec, on behalf of the
Business Software Alliance), and Jerry Cerasale (Direct Marketing Association). See,
notice. Location: Room 253, Russell Building.
6:00 - 8:15 PM. The DC Bar Association
will host program titled "Ethics of E-mail". The speaker will be
Thomas Spahn
(McGuire Woods). The price to attend ranges from $80 to $115. For more information, contact
202-626-3488. See,
notice. This event qualifies for continuing legal education (CLE) credits.
Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.
6:00 - 8:00 PM. The Federal Communications
Bar Association (FCBA) will host an event titled "FCBA Spring Reception".
See, registration
form [PDF]. Prices vary. Location: Washington Hilton Hotel, 1919 Connecticut
Ave., NW.
EXTENDED FROM APRIL 14. Extended deadline to submit reply
comments to the Federal Communications Commission (FCC) in response to its Report on
Broadcast Localism and Notice of Proposed Rulemaking. The FCC adopted this item on
December 18, 2007, and released the text on January 24, 2008. It is FCC 07-218 in MB Docket
No. 04-233. See,
notice in the Federal Register, February 13, 2008, Vol. 73, No. 30, at Pages 8255-8259.
See also, FCC's
Public Notice [PDF] (DA 08-393). See also,
Public Notice [PDF] (DA 08-515) extending deadlines.
Deadline to submit oppositions to the Federal Communications Commission
(FCC) in response to a
petition for reconsideration [42 pages in PDF] in the FCC's universal
service and access charge reform proceedings (CC Docket No. 96-45, CC Docket
No. 96-262, and WC Docket No. 06-122). See,
notice in the
Federal Register, May 27, 2008, Vol. 73, No. 102, at Page 30393.
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Thursday, June 12 |
9:30 AM. The Federal Communications Commission (FCC) may hold an event
titled "Open Meeting". See, FCC
notice
[PDF]. Location: FCC, Commission Meeting Room, 445 12th St., SW.
10:00 AM. The Senate
Judiciary Committee (SJC) may hold an executive business meeting. The agenda includes
consideration of Helene White and Raymond Kethledge to be Judges of the
U.S. Court of Appeals (6thCir), and Stephen
Murphy to be a Judge of the U.S. District
Court (EDMich). See, SJC
notice and story
titled "President Bush and Senate Democrats Reach Compromise on 6th Circuit
Nominees" in TLJ Daily
E-Mail Alert No. 1,747, April 15, 2008. The SJC rarely follows its published agendas.
Location: Room 226, Dirksen Building.
11:00 AM. The
House Judiciary Committee's (HJC) Subcommittee on Immigration will hold a hearing
titled "The Need for Green Cards for Highly Skilled Workers". The HJC
will webcast this hearing. See,
notice. Location:
Room 2237, Rayburn Building.
2:00 PM. The
House Foreign Affairs
Committee (HFAC) Subcommittee on Asia, the Pacific, and
the Global Environment will hold a hearing titled "U.S. Japan
Relations: an Overview". The witnesses will include Alexander Arvizu
(Department of State). See,
notice. Location: Room 2172, Rayburn Building.
TIME? The
House Appropriations Committee's (HAC) Subcommittee on Commerce, Justice,
& Science will meet to mark up the Commerce, Justice, and Science
appropriations bill. Location?
TIME? The Center for Democracy and Technology's (CDT)
Net Caucus will host an event titled "Safe
Computing Open House for Constituents". Location?
5:30 - 8:00 PM. The DC Bar Association
will host a program titled "The Trademark Office Speaks". The speakers
will be Christina Hieber (Associate Solicitor), Lynne Beresford (Commissioner for
Trademarks), and David Sams (Chief Administrative Trademark Judge, Trademark Trial and
Appeal Board). For more information, contact 202-626-3463. The price to attend ranges from
$50 to $65. See,
notice. Location: Hotel Monaco, 700 F St, NW.
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