States Keep Distance From Intel Probe

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June 03, 1998 (12:00 AM EDT)

While the Federal Trade Commission (FTC) moves forward with its own investigation into Intel's business practices, several state attorneys general are tracking the case, but have no immediate plans to jump in, sources said.

Unlike the recent antitrust case brought against Microsoft by 20 attorneys general and the District of Columbia -- which parallels legal action brought by the U.S. Department of Justice's Antitrust Division -- to date no attorneys general have opened their own probe into Intel's business practices, according to sources in four different attorneys general offices.

However, a spokesman for New York Attorney General Dennis Vacco said the National Association of Attorneys General "has tracked" the FTC's probe of Intel and will continue to monitor developments there.

According to another source with knowledge of the ongoing investigation, the FTC has already obtained hundreds of thousands of pages of documents on Intel's practices as it evaluates whether to bring suit in federal court against the Santa Clara, Calif.-based chip giant (company profile).

According to court documents, the FTC has been investigating charges that Intel coerced Hunstville, Ala.-based workstation maker Intergraph and other companies into acceding to its demands on patent and other issues.

Intel spokesman Chuck Molloy said the company denies wrongdoing in Intergraph's federal case against it in U.S. District Court in Birmingham, Ala., but had no comment on any FTC action.

Although Intergraph officials said they have been contacted by FTC investigators during the examination of Intel, they said there has been no such contact from any state antitrust probers.

FTC officials did not immediately respond to requests for comment.