Technology

New York Allies With AMD and Claims Intel Is the Bully

This is another piece in the 'World versus Intel' puzzle

By Bogdan Botezatu, Hardware Editor

11th of January 2008, 08:47 GMT

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The New York Attorney General Andrew Cuomo today backed up AMD's accusations at rival Intel of anticompetitive behavior in the CPU market. The city Attorney General today stated that Intel's "potential

anticompetitive conduct warrant a full and factual investigation." This announcement comes more than two years after the antitrust lawsuit filled by AMD against rival Intel, alleging that the latter violated certain portions of the Sherman Antitrust Act, the Clayton Act, and the California Business and Professions Code.

Cuomo has gathered an impressive amount of information on Intel, and served a "wide-ranging subpoena" seeking for further company documents. The Attorney wants to know whether Intel used coercion in its customer relationship in order to exclude its main rival, Advanced Micro Devices, from the worldwide market for x86 CPUs.

"After careful preliminary review, we have determined that questions raised about Intel's potential anticompetitive conduct warrant a full and factual investigation," Cuomo said. "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."

It is alleged that Intel "penalized" computer manufacturers and other customers for maintaining commercial relations with AMD in the CPU market, or it paid them for sticking to Intel processors. AMD has received a subpoena from Cuomo, demanding information.

AMD's antitrust filling was only the beginning of a series of lawsuits to hit the world's number one x86 CPU manufacturer. Intel has been found guilty of having violated antitrust regulations in Korea, and the European Union is currently charging Intel with the same accusations.

The legal dispute has slightly scratched Intel's market share value. Investors sent Intel's stock down 1.6% or $0.37 to $22.38 yesterday.

TAGS:

Intel | AMD | antitrust | lawsuit

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