Defend Truth

Cuomo vs Intel

By Incorrect Author
05 Nov 2009
0

Soon-to-be New York state governor and current state attorney, Andrew Cuomo, pulled another high-profile stunt on Wednesday, this time by filing an anti-trust lawsuit against the world’s dominant microchip-maker, Intel. It accused Intel of anti-competitive behaviour against its smaller, but much nimbler rival, Advanced Micro Devices (AMD), which has continued a pattern of similar cases over the last 18 years. While Intel was found guilty by Japan and South Korea in 2005, and fined $1.45 billion by the EU earlier this year, it is yet to be hit seriously in the US, its main market. The charge sheet is pretty gruesome, involving Intel pressuring its clients not to accept AMD chips and even paying IBM $130 million to hold back its server based on AMD’s Opteron chip. Should Cuomo be successful, it could seriously undermine the fundamentals of Intel’s business. And yet, Intel stock rose 1% after the news broke.Read more: Washington Post, New York Times

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