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New York Attorney General Sues Intel

by Chris Pollette |

4 Comments | Add Comment

 

Intel chips sit on a Micro Center computer store shelf in Santa Clara, Calif., on May 13, 2009. (AP Photo/Paul Sakuma)Microprocessor manufacturer Intel has been fielding legal complaints against it in Europe and Asia for a while now, but this morning New York Attorney General Andrew Cuomo filed a lawsuit against the company for anti-competitive practices.

According to Ashlee Vance’s article in The New York Times, the state claims that Intel has been using its position in the microprocessor marketplace to strong-arm Advanced Micro Devices (AMD) out of the way, which violates both state and national law.

According to Vance, Attorney General Cuomo’s office said the state has millions of documents from companies such as Hewlett-Packard, Dell and IBM that will provide background on the agreements between Intel and those companies. In addition, the state has testimony from many witnesses.

As Vance points out, Intel lost one case brought by the European Commission that carried a $1.45 billion fine. Intel has appealed the decision. Like the one filed in New York this morning, those suits basically claimed that computer manufacturers and retailers had contracts with the company that forced them  into manufacturing and stocking Intel-powered machines, rather than computers with AMD chips inside. Cuomo’s statement accused the company of “bribery and coercion,” which he said hurt competitors and consumers wanting a choice between better processors.

An Intel spokesperson said the company would defend itself, but there’s the matter of a lawsuit filed by AMD, which is due to hit the courts next March. And the Federal Trade Commission is also looking at Intel. Vance quoted a person who knows the state’s case against Intel as saying that the New York suit makes it even more likely the FTC will go after Intel, too. So it appears that Intel is facing a dogpile of lawsuits that may be quite serious for the company’s future.

If you’re interested in learning more about microprocessors and other cool computer technology, take a look at these articles:

How Microprocessors Work
How the Nehalem Microprocessor Microarchitecture Works
How Lawsuits Work

 

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4 Comments

  • T in SRQ says:

    Stuff has such good podcasts like History and anything done by Marshall. After listing to the tech podcast on podcasting, I now know why I can’t listen to tech stuff anymore. They wing it, have no time limits and take pride in speaking over each other. There are 3 minutes of substance, 3 minutes of entertainment and 18 minutes of innane interruptions and digressions. The listener who is giving you their time certainly feels cheated when it is over. I am unsubscribing to tech stuff and stuff you should know because it has become like fingers on the blackboard and I can’t take it anymore. Why should I invest 30 minutes listening to something that could be done in seven? And guys, not preparing is not a “style” it is rude, inconsiderate and amatuerish.

  • T: I’m sorry you feel that way. One might wonder why you take a full paragraph to say the same thing you could in a sentence. But hey, pot and kettle, right?

  • Hey guys,

    I don’t actually listen to your podcast, but I do listen to “Stuff You Should Know” and read as many of the articles on the site as I can. Just wanted to let you know that I couldn’t disagree with “T in SRQ” more. The way that material is presented makes it both easy to understand and applicable in my daily life. Also, the interruptions and digressions show that the reviewers are passionate about what they’re talking about and just can’t wait to get all the information out there. Also, everything is so casual that it could be happening in my living room. I think you’re doing a great job and hope you keep it up despite comments like those above.

    Thanks, Steve

  • Chris says:

    I am astonished at the the monopolies that seem to be forming around the computer industry, but hey there was a time half the cars on the road were Fords so I guess this will work it self out. It seems to me that Intel is pretty much the only game in town if you’re using a pc and they can set their own price point. If Intel had some decent competition, how affordable could we make computing? And could chip updating be a feasible plan?

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