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New York Attorney General Andrew M. Cuomo  (Source: Groll/AP)
“We intend to stop them" -- New York Attorney General Andrew M. Cuomo

Intel is no stranger to lawsuits. The company was slapped with a $1.45B USD fine by the EU in May of this year for anticompetitive practices. The charges leveled against Intel mainly focused on illegal methods Intel used to keep AMD from gaining in traction in the marketplace.

At the time, EU competition commissioner Neelie Kroes noted that, "[Intel used] used illegal anticompetitive practices to exclude its only competitor and reduce consumers’ choice — and the whole story is about consumers."

The Santa Clara, CA-based company later appealed the ruling with Intel spokesman Chuck Malloy saying, "Our position is that the decision was wrong and we said that from the day it was announced. It was wrong on many levels."

Now it appears that Intel is facing another lawsuit -- this time on its own home soil according to the New York Times. New York attorney general Andrew M. Cuomo is going after Intel this time with a federal antitrust lawsuit. Like the aforementioned EU case, Cuomo asserts that Intel used illegal tactics to stifle AMD.

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

The NYT adds that the state of NY's action against Intel could mean that the FTC could step in as well with charges of its own. "These are separate investigations, but it would be very surprising for New York State to go off on its own without being fairly confident the FTC would pursue Intel as well," a person familiar with the situation told the NYT.



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What good will all these fines do?
By kroker on 11/5/2009 12:50:29 AM , Rating: 1
What good will all the fines that Intel received do for any of us? Will these money go to AMD at least? No. It will just hurt Intel, and that means in the end it will hurt the consumer. So the consumer is hurt both by lack of good competition from AMD (some of which may be Intel's fault - that is the whole point of these lawsuits after all), and by the fact that Intel will have to reflect their budget loses in their product prices.

No, what Intel really deserves is to finally loose the damn x86 license. What we really need is more competition. Without AMD for example we would have single-core 10GHz Pentium 4s with Hyper Threading with 300W TDP by now. But AMD had a much better product and this forced Intel to change its plans. Intel's x86 instruction set is not revolutionary in any way. The reasons for it's success is because we, the consumers, chose it over other architectures available. We are the reason Intel made all of its billions, and then Intel screwed us because they wanted even for more money.

What we need is more competition, not fines. I'm tired of Intel's bullying, waving their licenses in front of everyone (like Nvidia for example)




RE: What good will all these fines do?
By hyvonen on 11/5/09, Rating: 0
By just4U on 11/5/2009 12:21:25 PM , Rating: 2
YES ... and NO. Amd did raise prices overall for much of their lineup but they were still selling the majority of them at a substantially lower cost then Intel was selling their cpu's. I can only remember one cpu being priced very similiar to Intel's and that was their highest end Opteron. It was pretty short lived though and seemed more like introductory pricing since it came down to a reasonable level 3-4 months later.


By UNCjigga on 11/5/2009 4:59:17 AM , Rating: 2
In addition to fines, antitrust judges also have the power to force Intel into a more competitive situation. Creating an open license for x86 is one option (that nobody sees happening); I think it'd be more fun to force Intel to "unbundle" CPUs from chipsets and allow more competition in that space.


RE: What good will all these fines do?
By uibo on 11/5/2009 10:05:03 AM , Rating: 2
quote:
Intel will have to reflect their budget loses in their product prices.


If this happens AMD will have an advantage (Their prices will not have to increase for this reason).


RE: What good will all these fines do?
By hyvonen on 11/5/2009 5:17:48 PM , Rating: 2
And you don't think that if Intel raises prices, AMD wouldn't do the same thing?

Price/performance ratio tends to be the same for both companies' products. AMD would love to finally make a profit, and they would most certainly hike the prices.

You know, Intel wouldn't have to raise prices - in fact, they could still drop the prices a ton, and still be profitable. But if they did, AMD would be out of business, and the regulators would split Intel into pieces. I think Intel is much happier to just keep making huge profits and keep AMD around to make it sound like there is an actual competitive market in place.


RE: What good will all these fines do?
By uibo on 11/7/2009 5:35:08 AM , Rating: 2
I doesn't really matter if AMD raised it's prices or not. If Intel would raise it's prices because of the fine (that's a big and unlikely if- I know) and AMD would increase theirs in response - AMD would still have an advantage. The additional income will not go into "covering" the fine.
Anyway I believe this case will not have any noticeable impact on how they run the companies.


"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007

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