NY Joins The Antitrust Effort Against Intel

DAVID B. CARUSO

NEW YORK (AP) — The legal challenges to Intel Corp.'s sales tactics mounted Wednesday as New York's attorney general accused the world's biggest computer chip maker of using "illegal threats and collusion" to dominate.

In filing a federal antitrust lawsuit, Attorney General Andrew Cuomo accused Intel of using its market prowess to "rule with an iron fist."

Intel's chips act as the "brains" of 80 percent of the world's personal computers. Cuomo said Intel paid billions of dollars in kickbacks to computer manufacturers and retaliated against those that did too much business with Intel's competitors, namely Advanced Micro Devices Inc.

"Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," Cuomo said in a written statement. "Intel's actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices."

An Intel spokesman, Chuck Mulloy, denied the latest charges, as the company has in the past, and said Intel's sales practices were legitimate.

"We never threatened anyone," he said.