New York files antitrust suit against Intel

November 5, 2009 | 12:45

Tags: #antitrust #intel-antitrust #intel-lawsuit #monopoly #new-york-attorney-general #processor

Companies: #amd #intel

Intel has come under fire from the New York Attorney General, who has filed an anti-trust suit against the company following allegations that it paid OEMs to maintain a monopoly on the processor market.

As reported over on CNet, Attorney General Andrew M. Cuomo states in the suit that "Intel has engaged in a systematic worldwide campaign of illegal, exclusionary conduct to maintain its monopoly power and prices in the market for x86 microprocessors."

The suit, which looks to "bar further anti-competitive acts by Intel, restore lost competition, recover monetary damages suffered by New York governmental entities and consumers, and collect penalties," further claims that "by exacting exclusive or near-exclusive agreements from large computer makers in exchange for payments totalling billions of dollars, and threatening retaliation against any company that did not heed its wishes, Intel robbed its competitors of the opportunity to challenge Intel's dominance in key segments of the market."

The federal antitrust suit comes after a prolonged Federal Trade Commission investigation into allegedly anti-competitive activities carried out by Intel, largely centered around denying its rival AMD an even playing ground in which to compete.

Intel's Chuck Mulloy disagrees with Cuomo's claims - naturally - stating that "neither consumers - who have consistently benefited from lower prices and increased innovation - nor justice are being served by the decision to file this case now," instead of back when AMD first raised a complaint about Intel's activities over four years ago.

With the European Union already having found Intel guilty of the offences alleged by this latest suit - and having fined the company a whopping £948 million - Intel could be in for a tough financial year if it doesn't manage to argue its case in front of a federal court.

Do you believe that Intel needs to be brought to task for its actions against its competitors, or is AMD simply trying to litigate where it can't innovate? Share your thoughts over in the forums.
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