New York AG files antitrust suit against Intel

Robert Hallock (Thrax) New York Attorney General Andrew Cuomo yesterday filed an antitrust suit against Intel in the US District Court for the District of Delaware.

November 4, 2009 2:49 PM ET in News, , , ,

intel logoNew York Attorney General Andrew Cuomo yesterday filed an antitrust suit (PDF) against Intel in the US District Court for the District of Delaware.

The suit alleges that Intel Corporation willingly compelled or participated in several market actions design to block or impede market actions from rival firm AMD.

“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 ‘brains’ of Personal Computers (‘PCs’),” the filing reads.

“By exacting exclusive or near-exclusive agreements from large computer makers (‘Original Equipment Manufacturers’ or ‘OEMs’) in exchange for payments totaling 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. This illegal behavior was highly detrimental to consumers, competition, and innovation.”

The Delaware filing is very similar to that of the European Commission’s which ruled against Intel in May with a penalty of €1.07 billion.

The ongoing EC case alleges that Intel leveraged its significant financial capabilities to persuade customers into delaying or aborting AMD-powered plans in favor of products with Intel chips. The charges include paying at least one retailer to stock only Intel parts, and offering several secret rebates to make Intel processors the only economical choice.

The New York suit has requested a trial by jury, and asks for compensatory damages on five claims both civil and criminal.

8 Comments:

  1. I nominate Andrew Cuomo for man of the day.

  2. Isn't that meaningful to see this suit in NY after AMD's huge investment in the state? I wonder if this was part of the deal. The same happened in EU after AMD helped Germany by investing in unemployed/impoverished Dresden (previously in East Germany).

  3. Isn't that meaningful to see this suit in NY after AMD's huge investment in the state? I wonder if this was part of the deal. The same happened in EU after AMD helped Germany by investing in unemployed/impoverished Dresden (previously in East Germany).

    If Intel were innocent of wrongdoing I would think they would have been able to make that case.

  4. Cliff, why won't you provide evidence that you haven't murdered anyone? Is it because you're a murderer?

  5. Right and wrong are separated with such a wide and blurred gray line in the business world nowadays. You are right that Intel is big enough for taking care of itself. But I just can't help seeing the pattern.

  6. Mirage, its a fair observation. I think ultimately its not about who files the claim and for what reason and more about what the testimony is. You know the old saying, Don't start nothin and there won't be nothin.... Intel got scared, people forget but there was a period where AMD had the superior chip, and Intel responded not by producing better tech but by bribing the OEM's and channel partners not to stock AMD. Read the EU testimony, its pretty damning.

  7. Right, Intel panicked with AMD's successful Athlon 64 and tried to pull dirty tricks. If Intel had just waited, AMD was going to screw itself in the next step and Intel had a strong product portfolio coming up. Both CEO's had big mistakes. Ruiz tried to launch a satellite without enough fuel in the rocket, Otellini (and his predecessor) acted like a cheap salesman. I am glad AMD survived the crash. They both learned their lessons, I hope.

  8. The point is that Intel didn't just wait. They paid off manufacturers to not use AMD chips. Sure, AMD made mistakes too, but at least theirs weren't illegal and anti-competitive. If AMD took illegal and anti-competitive measures to try and crush Intel, I'd be glad to see antitrust suits against them as well. They didn't though. Intel did. It's nice to see an attorney general not ignore antitrust law for once.

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