The Federal Trade Commission has issued an administrative complaint in an effort to stop electronics component manufacturer Integrated Device Technology, Inc. (IDT) from acquiring PLX Technology, Inc. The proposed $330 million deal would allegedly give IDT a near-monopoly in the PCIe switch market.
According to the FTC’s complaint, customers have traditionally used the competition between IDT and PLX to achieve lower prices by playing the two companies against each other. The acquisition of PLX by IDT would eliminate this possibility and give the combined firm a share “in excess of 85 percent” of the market.
“PCIe switches are important components in many computing, communications and consumer products,” Richard Feinstein, director of the FTC’s Bureau of Competition, said. “The combination of IDT and PLX would hurt competition and lead to higher switch prices, lower innovation in the marketplace, and reduced customer service.”
The evidentiary hearing is scheduled before an administrative law judge at the FTC in mid-May 2013.
