Intel sued for antitrust abuse

Intel, the world's largest chip maker, is facing an antitrust suit filed Wednesday by New York Attorney General Andrew Cuomo. The lawsuit charges Intel with violating state and federal laws by abusing its dominant position in the chip market by keeping its main rival, Advanced Micro Devices, at bay.

The lawsuit is similar to ones filed against Intel in Asia and Europe. In May, the European Commission filed Intel a record $1.45 billion for antitrust violations. In the New York case, the charges claim that Intel pressured computer makers and retailers to pick the company's microprocessors instead of competing products from A.M.D.

"Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," Cuomo said in a statement. "Intel's actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices."

The New York attorney general's suit is the first formal antitrust action against Intel by any government agency in the United States in more than a decade. Intel spokesman Chuck Mulloy said the company will contest the suit. "Neither consumers, who have consistently benefited from lower prices and increased innovation, nor justice are being served by the decision to file a case now," he said. "Intel will defend itself."

For more on the lawsuit against Intel:
- see this New York Times article

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