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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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By aj28 on 11/5/2009 8:05:34 PM , Rating: 2
Ruiz predicted that AMD's stock price would soar after news of the spin-off reached the public. In case you missed that period of history, it didn't happen, and nobody bled anybody for any money.

That said, where is your citation of these manufacturing demands they were supposedly experiencing? If you read the article, a lot of this is about planned products being canceled, particularly in the server realm. AMD likely already had the chips lined up, and as evidenced by current stocks of old Opteron chips, I'd be willing to bet they did.

Rule number one isn't getting the product to the customer. First off, the rule is convincing people to invest in your ideas. Money comes before product or even development. You can't build up a microprocessor design and manufacturing company without meaningful investments, and who is going to invest in a company which is clearly the victim of underhanded market tactics on the part of a huge and influential competitor like Intel?

Furthermore, AMD's products were indeed getting to their customers, but mostly in the retail channel where Intel's bribery wasn't as rampant. The vast majority of revenue comes through the OEM channels, and if the manufacturers advertising and delivering the end product to consumers are being bribed to use a competitor's product, how can you fight that? Only in court, but as we've seen the past few years now, that isn't likely to work, much less in a timely enough fashion to save your company.


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