May 12, 2009

Tech trust-busting is back in vogue in Washington, and the timing couldn't be worse for chipmaker Intel (INTC).

In a May 11 speech in Washington, D.C., Assistant Attorney General Christine Varney announced a return to "vigorous antitrust enforcement action" by the Justice Dept. The government will "take a new tack" toward redressing monopolistic practices and wield active antitrust enforcement in response to the "economic distress" that can result from uncompetitive markets, Varney told an audience at the Center for American Progress, a liberal policy research group.

She also warned courts and parties to lawsuits against invoking the antitrust policies of the Bush Administration, which has been seen as softer than the Clinton Administration in going after allegations of anticompetitive behavior

The remarks come as European Union officials prepare to find Intel guilty of anticompetitive practices in Europe, imposing a large fine in excess of €1 billion ($1.36 billion).

An announcement could come as soon as May 13 that Intel violated EU monopoly rules by offering computer makers financial incentives to favor its chips over those made by smaller rival Advanced Micro Devices.