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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Intel hit by NY antitrust suit, kickbacks alleged Wed Nov 4, 2009 2:28pm EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Jonathan Stempel NEW YORK (Reuters) - Intel Corp was sued by New York Attorney General Andrew Cuomo, who accused the world's largest chipmaker of threatening computer makers and paying billions of dollars in kickbacks to maintain its market dominance. The lawsuit accuses Intel of violating state and federal antitrust law through a "systematic worldwide campaign" of bullying and coercion to monopolize the market for personal computer chips, at the expense of rival Advanced Micro Devices Inc. Intel's microprocessors power more than 80 percent of the world's PCs. Wednesday's lawsuit comes on the heels of several antitrust probes throughout the world into the Santa Clara, California-based company's business practices. Cuomo said Intel for several years bribed or coerced computer makers such as Dell Inc, Hewlett-Packard Co and International Business Machines Corp to use its microprocessors or stop using those of rivals. The alleged wrongdoing included kickbacks in the form of "rebates" and threats of retaliation for using rival chips. Top officers including Intel Chief Executive Paul Otellini were aware of some of the activity, according to emails cited in the lawsuit filed in federal court in Wilmington, Delaware. In a conference call with reporters, Cuomo said Intel's "my way or the highway" has corroded competition, while forcing consumers and businesses to overpay for chips. "We intend to stop them," he said. The 83-page lawsuit seeks to stop Intel's anti-competitive conduct, and also seeks triple damages and other remedies. "Consumers have paid more for slower computers and competition has been dampened," said David Balto, a former Federal Trade Commission official who became a senior fellow at the Center for American Progress, a think tank. INTEL TO DEFEND ITSELF Intel spokesman Chuck Mulloy said the company would defend itself against Cuomo's charges. "Neither customers who have benefited from lower prices and increased innovation nor justice are being served by the decision to file a case now," he said. In afternoon trading, Intel shares were up 30 cents, or 1.6 percent, at $18.66 on the Nasdaq. "I have a hard time thinking it's not within people's expectations," said Doug Freedman, a technology analyst at Broadpoint AmTech in San Francisco, referring to the lawsuit. "If we look at antitrust cases in the past, you really only need to go look at Microsoft and you say, did it really have an investable impact?" Freedman said. "I think the answer is no." Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Playfish sees social games as industry driver also on reuters Witness: Remembering the day the Berlin Wall went down Full Coverage: The Route to Recovery Blog: A brief history of Goldman Sachs heads More Technology News Microsoft cuts 800 jobs, completes layoff plan Beatles remasters heading to USB Playfish sees social games as industry driver Microsoft to set up cloud research center in Taiwan Yahoo teams with OneRiot on real-time search More Technology News... 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