AG Cuomo sues Intel on antitrust claims

NEW YORK, Nov. 4 (UPI) -- New York's attorney general Wednesday filed a federal antitrust suit against Intel Corp., charging it violated state and federal anti-monopoly laws.

In the past several years, Intel extracted exclusive agreements from computer makers in which they agreed to use Intel's microprocessors in exchange for payments totaling billions of dollars, Andrew Cuomo said in a release. The lawsuit also alleged Intel threatened to -- and did -- punish computer makers perceived to be working too closely with Intel's competitors.

Intel is the world's largest maker of computer microprocessors. Intel's microprocessors -- the "brains" of personal computers -- typically are sold not directly to the public, but to computer makers as components. Intel's actions involved three of the largest U.S. computer manufacturers: Dell, Hewlett-Packard and IBM, the lawsuit said.

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

The suit, filed in federal court in New York, seeks to bar further anti-competitive acts by Intel, restore lost competition, recover monetary damages and collect penalties.