Intel facing New York antitrust investigation

Computing giant Intel is facing another anti-trust probe after the US state of New York announced a formal investigation of the company.

New York, the financial capital of the US, wants to determine if the world's leading chipmaker broke state and US antitrust laws to edge out its main rival, AMD.

New York state Attorney General Andrew Cuomo said his office issued a broad subpoena seeking information after a preliminary probe raised questions about whether Intel coerced customers to exclude AMD from the worldwide market for microprocessors, the main computing engines of PCs.

Intel is facing similar investigations in Europe and Asia, although 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."

Intel spokesman Chuck Mulloy confirmed the company had received the subpoena and would "work very hard" to comply with the subpoena, in keeping with its normal practice.

"We believe our business practices are lawful and that the microprocessor market is competitive and is functioning as one would expect a competitive market to function," Mulloy said.

AMD said it had been contacted by Cuomo's office. "I can confirm that we have received a subpoena, too," said spokesman Drew Prairie.

According to a 2005 lawsuit AMD filed against Intel in Wilmington, Delaware, Intel is alleged abused its market-leading position in the $30 billion (£15 billion) market for microprocessors by encouraging its customers to avoid AMD. Intel has denied the allegations.

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.

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