New York Investigates Intel for Antitrust Violations

NEW YORK — New York's attorney general launched an investigation of Intel Corp. Thursday to determine whether the world's largest computer chip maker violated state and federal antitrust laws to hurt its rival, Advanced Micro Devices Inc.

Attorney General Andrew Cuomo's office issued a broad subpoena seeking documents and information concerning Intel's pricing practices and attempts to exclude competitors.

Intel, which has faced similar investigations in Asia and Europe, confirmed it received the subpoena.

"Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation," Cuomo said. "Protecting fair and open competition in the microprocessor market is critical to New York, the United States and the world."

Intel spokesman Chuck Mulloy said the company would work hard to comply with the investigation.

"We believe our business practices are lawful," he said. "We also believe the microprocessor market is a competitive market and is behaving as one would expect a competitive market to behave to the benefit of consumers."

Cuomo's investigation concerns whether Intel penalized customers, mainly computer manufacturers, for buying x86 processing units from competitors. Those units are found in most computers.

The investigation also seeks information about whether Intel improperly paid customers for exclusivity and cut off competitors' distribution channels.

Mulloy said Cuomo's stated concerns mirror a private lawsuit filed by AMD in Delaware in 2005. He said Intel has denied the allegations in that case, which is to go to trial in April 2009.

AMD has for years accused Intel of anticompetitive practices in the U.S. and other countries. One allegation in the 2005 lawsuit is that Intel gives rebates to computer makers who do not buy some AMD products.

Sen. Charles Schumer, D-N.Y., who asked the Federal Trade Commission in August to investigate Intel, on Thursday criticized the agency for not acting.

"Antitrust investigations into Intel are springing up everywhere except Washington," Schumer said. "The FTC needs to stop looking the other way on Intel and start getting serious about enforcing antitrust law."

The Associated Press contributed to this story.

On the Web:

Intel: www.intel.com