New York AG files antitrust charges against Intel; alleges bribery, coercion

ZDNet ^ | November 4th, 2009 | Sam Diaz

[Wooly]

The New York Attorney General’s office today accused chip maker Intel of engaging in “a worldwide, systematic campaign of illegal conduct,” including paying kickbacks and threatening computer makers, and filed federal antitrust charges against it. (PDF of Complaint)

In a statement, New York Attorney General Andrew Cuomo said that e-mails revealed that Intel has scored exclusive agreements with computer makers to use its microprocessors by resorting to “rebates” and threats, such as cutting off payments, funding a competitor or ending joint development ventures. In a press release, Cuomo said:

Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market. Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices. These illegal tactics must stop and competition must be restored to this vital marketplace.

Intel spokesman Chuck Molloy told the Wall Street Journal that the company will defend itself against the charges and that “Neither consumers who have consistently benefited from lower prices and increased innovation, nor Justice, are being served by the decision to file a case now.”

[relictele]

Here we go again....another NY AG fishing for cash under the pretext of protecting consumers.

It makes one nostalgic for Janet ‘BBQ’ Reno and her shakedown of Microsoft.

[edcoil]

What it should have said.

The New York Attorney General’s office today accused the ACLU of engaging in “a worldwide, systematic campaign of illegal conduct,” including paying kickbacks and threatening companies and governments, and filed federal antitrust charges against it.

[Wooly]

Intel is the 800 pound gorilla and has thrown their weight around to prevent innovation.
I still remember an article back when Apple was changing to Intel, where Intel had told them take this or go somewhere else

[Wooly]

Intel is the 800 pound gorilla and has thrown their weight around to prevent innovation.
I still remember an article back when Apple was changing to Intel, where Intel had told them take this or go somewhere else

[Wooly]

Intel is the 800 pound gorilla and has thrown their weight around to prevent innovation.
I still remember an article back when Apple was changing to Intel, where Intel had told them take this or go somewhere else

[Zathras]

Sorry, this lawsuit is all about payback to AMD for building their new fab in NY.

Apple decided to go with Intel because IBM/PowerPC was failing to meet its expectations which AGAIN was built in NY.

[Red Badger]

Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market.

One could say the same thing of Democrats in Congress and the White House................

[Jack Black]

Another case of "The First State Among Many" trying to shake down, control, and take over every business in the USA. Intel should begin by closing whatever presence they have there, and contributing the maximum allowed to the state GOP. This is just more showboating by that simpering bed-wetter Andrew Cuomo, who is trying to follow in the footsteps of his daddy and Spitzer and become Gov. It's one time I'm rooting for the corrupt black politician to win!

[Kieri]

I’m looking to replace my aging desktop within the next year, and I’ll buy an Intel-based system. Hopefully one of the new Core iX chips.

I had one AMD system. It was the only time in my life I got the BSoD because a program didn’t like the processor (and told me so in no uncertain terms!). I’ve *never* had a problem with an Intel-based computer.

[Zathras]

I consider the i7/i5 family the finest processors Intel has ever designed.

The worst designed was either the original Itanium or the last version of the Pentium 4 which is why AMD was so successful during the 2000-2006 timeframe.

[Real Cynic No More]

... and threats, such as cutting off payments, funding a competitor or ending joint development ventures.

And doing these types of things is illegal? Businesses have the right to enter into ventures with competitors of other businesses or cancel such ventures if the ability to do so is in the contract terms; they do it all the time. Warning current or potential customers that they will do this is only fair. So maybe they shouldn't have warned them?

Isn't this exactly what the Dimocratic leadership in Congress and in the Obama administrationo are doing to those who don't toe the line to their demands, to the general public, and to those they've identified as opposed to their agenda, such as Rush Limbaugh, Glenn Beck, correspondents on Fox News, etc.?

So it's legal for those in power in the government (who have much more power over corporations than corporations have over their potential customers) to do so, but not for those corporations who are more and more serving at the pleasure of the government?

And it seems as if the government is attacking only those companies that it can't control via the stimulus or buyout dollars.