Intel target of New York antitrust probe

Stephen Withers
Friday, 11 January 2008 02:17

IT Industry - Strategy

New York state attorney general Andrew Cuomo has launched an antitrust investigation of Intel to determine whether the company illegally coerced its customers to exclude AMD from their x86 purchasing.

"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."

Both Intel and AMD have been subpoenaed by the attorney general's office in an apparent attempt to unearth information about practices such as penalising customers who also purchased competing chips, making improper payments in return for exclusive use of Intel CPUs, and illegally cutting off competitors from distribution channels.

"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," said Cuomo.

According to the attorney general's office, Intel holds 90 percent of the $US30 billion annual market for x86 chips.

Intel also faces antitrust charges from the European Commission.