Monday, December 6, 2010
Posted by D. Daniel Sokol
ABSTRACT: Over the past several years, government competition agencies and private plaintiffs have sued Intel challenging the legality of its relationships with original equipment computer manufacturers (“OEMs”). These lawsuits have combined to produce a detailed account describing Intel’s relationships with OEMs and analyzing the competitive effects of these relationships. This paper uses the public evidence in this account as a starting point for further analysis of both competition in downstream markets and the structure of Intel’s contracts with OEMs. By presenting this additional analysis, this paper seeks to better identify the circumstances under which exclusive contracts can lead to anticompetitive harm.