New York launches antitrust probe into Intel
NEW YORK (Reuters) - New York state launched a formal investigation on Thursday to determine if Intel Corp (INTC.O), the world's biggest chipmaker, violated state and U.S. antitrust laws to squeeze out rival Applied Micro Devices Inc.
New York Attorney General Andrew Cuomo said his office had issued a wide-ranging subpoena seeking documents and information after a preliminary probe raised questions about whether Intel coerced customers to exclude AMD (AMD.N), its main rival, from the worldwide market for microprocessors, the main computing engines of PCs.
Intel is facing similar investigations in Europe and Asia. Federal antitrust enforcers in Washington have so far declined to take up the matter.
"Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation," Cuomo said in a statement. "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."
An Intel spokesman said the Santa Clara, California, company, which has long been a target of government regulators for alleged anticompetitive practices, declined immediate comment. The company has either most often prevailed in the disputes or settled them amicably with regulators or rivals.
AMD said it had been contacted by Cuomo's office. "I can confirm that we have received a subpoena, too," said spokesman Drew Prairie, who declined to give any details.
On Monday in Brussels, an Intel spokeswoman said the company had responded to antitrust charges filed by the European Commission and would seek a hearing. The commission charged Intel last July with slashing prices below cost and offering huge rebates in an illegal attempt to drive the smaller AMD out of the market.
The EC charges and the response are confidential.
(Reporting by Joseph A. Giannone in New York, Diane Bartz in Washington and Duncan Martell in San Francisco; Editing by Gerald E. McCormick and John Wallace)
