Attorney general launches antitrust investigation of Intel

Subpoena's were issues January 10th, 2008 seeking documentation and information on Intel Corporation (NASDAQ: INTC), the world's largest maker of computer microprocessors, potential violation of state and federal antitrust laws by coercing customers to exclude its main rival, Advanced Micro Devices (AMD), from the worldwide market for x86 computer processor units (CPU).

“After careful preliminary review, we have determined that questions raised about Intel's potential anticompetitive conduct warrant a full and factual investigation,” said Attorney General Cuomo. “Protecting fair and open competition in the microprocessor market is critical to New York, the United States, and the world. Businesses and consumers everywhere should have the ability to easily choose the best products at the best price and only fair competition can guarantee it. Monopolistic practices are a serious concern particularly for New Yorkers who are navigating an information-intensive economy.”
The information sought is to determine whether Intel, among other things:

-Penalized its customers, primarily computer manufacturers, for purchasing x86 computer processing units (CPU) from competitors;

-Improperly paid customers for exclusivity;

-Illegally cut off competitors from distribution channels.

“Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation,” said Cuomo. “We will also look at whether Intel abused its power to remove competitive threats or harm competition in violation of New York and federal antitrust laws.”

These allegations are not new for Intel. Similar antitrust allegations have been filed around the world. In 2005, Japanese Fair Trade Commission concluded that Intel violated its competitive laws, and Intel agreed to cease and desist. In July 2007, the European Commission and the Korean Fair Trade Commission reached preliminary conclusions that Intel violated competitive laws. In both Europe and Asia, Intel has been served with cease and desist orders.

For more information visit New York State Attorney General