Following a lawsuit where they were fined $1.5bn by the European Competition Authorities, Intel has had a new suit brought against them by the New York attorney general. Whilst appealing the conviction in Europe, Intel has been accused of using “illegal threats” to coerce manufacturers in the computer industry into buying from them instead of rivals.
Under investigation for two years, Andrew Cuomo explained that the anti-competition federal lawsuit had been brought against Intel for their use of “bribery and coercion”. Meanwhile Intel released a statement saying the “decision to file suit against (us) is just plain wrong. 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.”
However, Mr Cuomo explained that Intel had been partaking in a “worldwide, systematic campaign of illegal conduct”. He 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.” Additionally Mr Cuomo revealed that the details had come to light through the exchange of emails, saying that “in some years billions” had been used to payoff manufactures. If companies were “perceived to be working too closely with Intel’s competitors” payoffs were then withdrawn.
Mr Cuomo had stated a “strong case” said the Computer and Communications Industry Associations president Ed Black who said “The quicker Intel owns up to its actions the quicker it, and the entire computer industry, can move on.”
