Panel gives Intel more time for response

Mar 18, 10:15 AM EST

TOKYO (AP) -- Intel Corp. said Friday that Japan`s Fair Trade Commission has given the chipmaker`s Tokyo-based subsidiary two more weeks to respond to an administrative order to halt alleged anti-monopoly practices.

The Japanese watchdog extended the deadline to April 1 from March 18 to give the company more time to examine the contents of the administrative order, Intel`s Japan unit said.

The FTC said earlier this month that Intel K.K., the local unit of the U.S. chipmaker, had violated an anti-monopoly law by using heavy-handed sales practices and its dominant market share to dissuade domestic personal computer makers from using rivals` chips.

Intel defended its practices after the ruling.

The commission did not impose any fines on Intel, but said the company could face prosecution if it doesn`t change its ways.

The FTC said Intel violated antitrust laws as early as 2002 by trying to stifle rival manufacturers of microprocessor chips that are the silicon brain of computers. It ordered the company to put an end to the practice.

The decision followed the FTC`s raid in April 2004 of Intel`s three Japanese offices on suspicions that the company was improperly urging Japanese personal computer makers not to use microprocessor chips manufactured by its U.S. rivals, including Advanced Micro Devices Inc. and Transmeta Corp.

Intel shares rose 13 cents to $23.54 in early trading on the Nasdaq Stock Market. The stock has been trading at a 52-week range of $19.64 to $29.01.