Monday, January 14, 2008

NY investigates Intel sales practice

NEW York Attorney General Andrew Cuomo has launched an instigation of chip-maker Intel amid concerns the company had violated anti-trust laws by coercing customers to exclude its rival Advanced Micro Devices (AMD).

Cuomo served Intel with a wide-ranging subpoena seeking documents and information on the company and its relationship with some customers.

“Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation,” Mr Cuomo said. “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.”

Similar antitrust allegations have been examined by authorities in Europe and Asia and resulted in formal actions, including a cease and desist order, against Intel.

The subpoena served on Intel seeks documents and information concerning Intel’s pricing practices and possible attempt to exclude competitors through its market domination. Specifically it seeks to find whether Intel penalised customers for making purchases from a competitor, or if it made improper payments to customers to keep them from buying a competitors product.

AMD’s executive vice-president for legal affairs Tom McCoy welcomed the investigation.

“New York State’s decision, based on its findings to date, to open a formal investigation of Intel’s anticompetitive business practices is good news for computer buyers in NY and throughout the United States,” Mr McCoy said.

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