New York Attorney General Investigates Intel
Posted by Chris Evans on 01.10.2008
Big gaming business news as the New York AG subpoenas Intel
The New York Attorney General has launched a subpoena to investigate leading computer hardware manufacturer Intel for violating state and federal anti-trust laws. The investigation is set to centre around claims that Intel is coercing clients not to use AMD x86 CPUs.
The subpoena served today on Intel seeks documents and information concerning Intel's pricing practices and possible attempt to exclude competitors through its market domination. The information sought is relevant to whether Intel, among other things:
* Penalized its customers, primarily computer manufacturers, for purchasing x86 computer processing units (CPU) from competitors;
* Improperly paid customers for exclusivity;
* Illegally cut off competitors from distribution channels.
Modern x86 CPUs are currently the industry-wide standard for a majority of desktops, laptops, notebooks, servers, and workstations. The x86 market accounts for over $30 billion in annual worldwide sales, with Intel retaining the lion's share of the market, estimated at 90% by revenue and 80% by volume.
"Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation," said Cuomo. "We will also look at whether Intel abused its power to remove competitive threats or harm competition in violation of New York and federal antitrust laws."
