New York attorney general Andrew Cuomo's office has issued a
subpoena intended to help it gather evidence into Intel's
practices. It will investigate whether or not Intel forced its
customers to exclude competitor Advanced Micro Devices (AMD).
“After careful preliminary review, we have determined that
questions raised about Intel's potential anticompetitive conduct
warrant a full and factual investigation,” said Cuomo. “Businesses
and consumers everywhere should have the ability to easily choose
the best products at the best price and only fair competition can
guarantee it. Monopolistic practices are a serious concern
particularly for New Yorkers who are navigating an
information-intensive economy.”
Cuomo's office said that it would investigate whether Intel
penalised computer manufacturer customers when they chose to build
some machines using competing chips; whether it improperly paid
customers to use only Intel chips; and whether it illegally blocked
distribution channels for competitors.
It said that the investigation would focus on state and national
laws.
The grounds for investigation are very similar to charges laid
at Intel's door by the European Commission. It is also
investigating Intel's behaviour and the Commission has said that
the company had an "overall anti-competitive strategy" which broke
the EC Treaty in three different ways.
"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.”
Intel said last week that it would defend itself against the
European charges. The company has a right to an oral hearing before
the Commission makes a ruling in the case.
The Commission won a victory last year when a court backed its
2004 ruling against Microsoft on competition offences. Its action
on Intel follows an investigation which lasted six years and
involved raids on Intel premises.
