European Commission Decision on Intel Statement by Boston University Law Professor Keith N. Hylton

BOSTON, May 13 /PRNewswire/ -- BOSTON, May 13 /PRNewswire-USNewswire/ -- Keith N. Hylton, the Honorable Paul J. Liacos Professor of Law at Boston University School of Law, issued the following statement in reaction to the European Commission's ruling on the investigation of Intel's business practices.

"The EC decision to impose the largest fine in its history on Intel, largely for its price cutting, sends a worrisome signal to dominant firms in the U.S. Antitrust law in the U.S. has largely abandoned the idea that consumers can be made better off by punishing firms that cut prices aggressively," said Professor Hylton. "Punishing large firms for cutting prices provides a strong incentive for those firms to avoid price competition, and this hurts consumers in the long run. Recognizing this, U.S. antitrust law has in effect provided a safe harbor from antitrust liability for large firms that cut prices when selling to U.S. consumers. The EC decision on Intel effectively destroys that safe harbor once the firms start selling their goods on the global market."

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