December 2, 2010
The Competition Law360 article, "FTC's Intel Action Leaves Uncertainty in Its Wake," quoted partner Richard E. Donovan on the Federal Trade Commission's use of Section 5. This section prohibits unfair methods of competition and deceptive practices in commerce and was used in the Commission's antitrust lawsuit against Intel. Antitrust experts discussed the FTC's settlement with Intel and what it means for the FTC's plans to expand what conduct falls within Section 5.
"'I tell clients that the Intel case is a bit of the proof in the pudding that the FTC means it and they're going to continue to look for opportunities to use Section 5,' said Richard Donovan, co-chair of the antitrust and competition practice group at Kelley Drye & Warren LLP."
Mr. Donovan also stated that the agency's interest in using Section 5 could change how companies targeted by the FTC calculate their risks in winning or losing a case. He noted that under this statute, the agency bears a lower burden of proof.