University of Chicago Law School Chicago Unbound Journal Articles Faculty Scholarship 1999 Regulating Network Industries: A Look at Intel Randal C. Picker Follow this and additional works at: https://chicagounbound.uchicago.edu/journal_articles Part of the Law Commons Recommended Citation Randal C. Picker, "Regulating Network Industries: A Look at Intel," 23 Harvard Journal of Law and Public Policy 159 (1999). This Article is brought to you for free and open access by the Faculty Scholarship at Chicago Unbound. It has been accepted for inclusion in Journal Articles by an authorized administrator of Chicago Unbound. For more information, please contact
[email protected]. REGULATING NETWORK INDUSTRIES: A LOOK AT 1NTEL RANDAL C. PICKER* The question "Does Regulation Promote Efficiency in Network Industries?" - the topic for the panel discussion associated with this paper-can best be answered through an initial general orientation on the topic, followed by a careful consideration of a particular situation. To that end, Part I discusses ways of defining network industries, while Part II sets out briefly the patterns of regulation that we see in network industries. Part III turns to the Federal Trade Commission's recently settled case against Intel. Part IV concludes. To preview the conclusions, evaluating the FTC's case against Intel turns on tricky issues regarding the dynamics of cross-licensing. That case appears to give very little weight to the benefits that arise from royalty-free cross-licenses. This practice reduces the royalty rates that will be charged to personal computer makers to the direct benefit of consumers. The settlement may very well make it more difficult for Intel to negotiate royalty-free cross-licenses.