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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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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.

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