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The Honolulu Advertiser
Posted on: Friday, January 11, 2008

Intel under antitrust investigation

By Michael Gormley
Associated Press

ALBANY, N.Y. — New York Attorney General Andrew Cuomo is investigating possible violations of state and federal antitrust laws by Intel Corp., the world's largest manufacturer of computer microprocessors.

A Cuomo spokesman said subpoenas were being delivered yesterday seeking information on whether Intel coerced customers to exclude Advanced Micro Devices Inc., known as AMD, from the market for a specific computer processing unit.

Cuomo said his preliminary review showed a need for a full investigation.

The subpoenas seek data about Intel's pricing strategies and whether Intel penalized computer makers, cut off competitors' distribution channels, and improperly paid customers for exclusivity.

Intel said it hasn't broken any laws despite several legal actions under way against it around the world. The company believes the legal moves are driven by AMD, its closest competitor.

"We believe our business practices are lawful," said Intel spokesman Chuck Mulloy. "We also believe the microprocessor market is a competitive market and is functioning the way one would expect a competitive market to function."

Mulloy said Cuomo's concerns mirror those in a lawsuit AMD filed against Intel in federal court in Delaware in 2005, which claims Intel bullied major customers — PC makers such as Dell Inc. — into exclusive deals and offering secret rebates.

AMD alleges anticompetitive practices in several countries, including Britain, Germany and Japan.

The case is scheduled to be heard in April 2009, Mulloy said.

Intel, which commands three-quarters of the worldwide microprocessor market, has denied AMD's allegations and defends its business practices as legal and beneficial to consumers.

Federal regulators apparently have not launched a formal probe of Intel's marketing practices, despite requests from members of Congress and AMD.