8-KRegulation FD

INTEL CORP 8-K Report, Regulation FD Disclosure (Jun 6, 2008)

Filed June 6, 2008For Securities:INTC

Summary

Intel Corporation (INTC) disclosed in this Form 8-K that it has received a ruling from the Korea Fair Trade Commission (KFTC) finding the company in violation of Korean antitrust laws for "abuse of dominance" on two counts. This ruling resulted in a fine of approximately $25.4 million (26 billion Korean won). Intel expressed disappointment with the KFTC's decision, stating it believes the outcome may negatively impact price competition, ultimately harming consumers. The company indicated its intention to seek a further review from the KFTC and potentially appeal the decision to a Korean court. Furthermore, Intel announced it has received a subpoena from the U.S. Federal Trade Commission (FTC) concerning its business practices within the microprocessor market. This new inquiry from the FTC, alongside existing government investigations and lawsuits related to competition matters previously disclosed in its 2007 10-K and Q1 2008 10-Q filings, highlights ongoing scrutiny of Intel's market conduct.

Key Highlights

  • 1Intel fined approximately $25.4 million by the Korea Fair Trade Commission for alleged antitrust violations (abuse of dominance).
  • 2Intel disagrees with the KFTC ruling and plans to seek further review and potentially appeal to a Korean court.
  • 3The company believes the KFTC ruling could negatively impact price competition and consumer benefits.
  • 4Intel received a subpoena from the U.S. Federal Trade Commission regarding its business practices in the microprocessor market.
  • 5The U.S. FTC subpoena adds to existing government investigations and legal proceedings related to competition matters.
  • 6This filing is made under Regulation FD, indicating the information is being disclosed to the public simultaneously.

Frequently Asked Questions

The KFTC ruled that Intel violated Korean antitrust laws for abuse of dominance and imposed a fine of approximately $25.4 million. Intel intends to contest this ruling, which could have implications for its market practices and financial standing in South Korea.

Intel received a subpoena from the U.S. FTC related to its business practices concerning competition in the microprocessor market. This suggests ongoing antitrust scrutiny from U.S. regulators, in addition to the issues in South Korea.

While this filing provides disclosure of the events, the direct impact on stock price depends on investor interpretation of the severity and potential outcomes of these investigations and rulings. Investors will likely monitor future developments, any financial penalties, and potential changes to Intel's business practices.

Intel is 'extremely disappointed' with the KFTC's decision and plans to review the ruling. They expect to request a further review from the KFTC and, if necessary, pursue an appeal in a Korean court.