BU Now » Federal Trade Commission

Intel settles antitrust case with FTC

Dick Taffe — Wed, 04 Aug 2010 19:57:51 +0000

In a “I-never-did-it-and-won’t-do-it-again” deal, Computer chip-making giant Intel agreed with the Federal Trade Commission to step back from business practices — like coercing computer makers not to buy microprosessor chips from rivals — which allegedly stifled competition and deprived consumers of better choices for at least a decade. The “play nice” settlement comes on the heels of a $1.25 billion settlement last year with competitor AMD and as Intel continues to contest a $1.45 billion antitrust fine in Europe. Law Professor Keith Hylton, an authority in antitrust law, says the incentives on both sides for a settlement were especially strong in this case.

“The FTC’s claims, which mirrored those of the European Comission, were not well founded in American law. Intel, in spite of having a strong legal argument, had no interest in spending years in litigation against the FTC (along with the European Commission). The obvious result of this mixture of incentives is a settlement.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

Apple draws antitrust suspicions

Dick Taffe — Tue, 04 May 2010 19:39:26 +0000

Federal antitrust enforcers are considering a probe into Apple Inc. after changes in the company’s licensing agreement with iPhone application developers that forbids the use of software tools other than Apple’s to build programs or the transmission of analytical data to third parties like advertisers. It’s yet to be decided if the inquiry would be conducted by the Federal Trade Commission or the Department of Justice. School of Management Professor Michael Salinger, a former FTC director, says there was a time when the DoJ might have gone easier on Apple than the FTC.

“During the Bush years, Apple would surely have preferred that DoJ get the case. I question whether that is still true.”

Contact Michael Salinger, 617-353-4408, salinger@bu.edu

New antitrust guidelines for mergers

Dick Taffe — Tue, 20 Apr 2010 22:43:20 +0000

U.S. antitrust regulators from the Department of Justice and the Federal Trade Commission have proposed new guidelines for how they scrutinize mergers for possible antitrust violations. Law Professor Keith Hylton, an antitrust law authority, and School of Management finance Professor Michael Salinger, a former FTC director, agree the proposed guidelines more accurately reflect current practice — but that only time will tell if they’ll work.

Hylton: “As defendants become better acquainted with actual practice, the FTC may find that it prefers to make further changes down the road.”

Salinger: “What remains to be seen is whether the courts will accept the less structured approach.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu, or Michael Salinger, 617-353-4408, salinger@bu.edu

FTC sniffing Google-AdMob deal

Dick Taffe — Wed, 07 Apr 2010 18:06:33 +0000

The Federal Trade Commission is reportedly preparing an antitrust challenge to Google’s proposed acquisition of the mobile-advertising company AdMob, and asked AdMob competitors about what the deal would mean for consumers. Law Professor Keith Hylton, an authority on antitrust law, says be weary of what the competitors say — even in sworn statements.

“If the FTC asks AdMob’s competitors what they think about an acquisition that might give the firm a competitive advantage by enhancing the efficiency of its service, what will they say? My guess is that they will say that the acquisition is bad for consumers.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

Brand/generic patent-deal ban nixed

Dick Taffe — Thu, 18 Mar 2010 16:47:03 +0000

A proposal, backed by the Federal Trade Commission because it would save consumers money, would have banned patent settlements between brand-name and generic drug makers. But it was dropped from the health-care reform bill because it couldn’t pass muster with Congressional rules. School of Management Professor Michael Salinger, a former FTC director, the ban still should be enacted.

“So far, the courts have thwarted the FTC’s valiant efforts to end pay-for-delay. Whether or not it is included in the health-care overhaul, Congress should do so.”

Contact Michael Salinger, 617-353-4408, salinger@bu.edu

FTC to get new powers

Dick Taffe — Thu, 29 Oct 2009 20:22:34 +0000

Congress is moving to give the Federal Trade Commission new powers to oversee and punish violators of FTC regulations aimed at protecting consumers. School of Management Professor Michael Salinger, a former FTC director, says the authority to impose civil penalties will help, but cautions that the ban on “unfair trade practices” in the FTC Act is vague.

“The combination of large penalties and uncertain legal standards can be a big problem.”

Contact Michael Salinger, 617-353-4408, salinger@bu.edu