title: Playing by the rules. How Intel avoids antitrust litigation.
abstract: Microsoft and Intel are both obvious targets for antitrust litigation; both wield considerable control in their respective segments of the computer industry. But while Mircrosoft has been mired in court for years now--its name and business practices dragged through the mud, and its very future as a single company thrown into doubt--Intel has avoided a prolonged, high-profile antitrust case. Intel's success is not a matter of luck. The company's antitrust compliance program, refined over many years, has been an integral element in the chip maker's business strategy. In this article, the authors suggest that Intel's approach to compliance provides a valuable model for any enterprise that may come under regulators' scrutiny. They describe how Intel created extremely conservative antitrust compliance standards and then instituted a series of unique training events that had active support from then--CEO Andy Grove and others in senior management. First, live training -- not just instructional pamphlets or videos -- was given to all affected employees. Those classes were followed by customized training programs for different parts of the company. Then, to drive antitrust awareness deeper into the company's memory, Intel carried out random audits of employees' files and conducted mock depositions. "It's fascinating to see," Grove says. "A memo is introduced into evidence and you shrug. You fully understand how that memo could be written. Moreover, you could have written it yourself. And then you see that memo turned into a tool and a weapon against you, in front of your eyes." Intel recognizes that no matter how cautious it is, it will always face extraordinary scrutiny as a market leader. But "since antitrust is embedded in everything we do," Grove says, "we can control our destiny."
authors.affiliation: Harvard Business School, Boston, USA.
authors.forename: D B
authors.initials: DB
authors.lastname: Yoffie
authors.forename: M
authors.initials: M
authors.lastname: Kwak
mesh_terms: D016363:Antitrust Laws; D003132:Commerce / Q000331:legislation & jurisprudence* / Q000458:organization & administration / Q000592:standards; D019983:Guideline Adherence / Q000331:legislation & jurisprudence*; D008838:Microcomputers; D012984:Software; D014481:United States