Intel sued for bribery and threats

[Neu California]

Intel in threats and bribery suit

Intel is facing a federal lawsuit that accuses it of using "illegal threats" to dominate microchip sales.

The New York attorney general accuses Intel of using "bribery and coercion" to make computer manufacturers buy its chips instead of those from its rivals.

Andrew Cuomo said the anti-competition federal lawsuit follows an investigation lasting almost two years.

Intel said in a statement that the "decision to file suit against [us] is just plain wrong".

"Neither consumers, who have consistently benefited from lower prices and increased innovation, nor justice, are being served by the decision to file a case now," it added.

In May, Intel was fined $1.5bn (£948m) by European competition authorities.

The firm denied any wrongdoing in that case and is now appealing.

'Systematic campaign'

Mr Cuomo said Intel - the world's largest maker of semiconductors - had been engaged in a "worldwide, systematic campaign of illegal conduct".

"Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," he added.

"Intel's actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices."

Mr Cuomo said the details of the case were revealed in email exchanges.

Intel is accused of paying millions of dollars each year - and "in some years billions" - in payoffs to computer makers in exchange for them only buying its chips.

It is further said to have withdrawn this payments to punish those computer firms "perceived to be working too closely with Intel's competitors".

In the European case, the European Commission ruled in May that Intel had paid manufacturers and one retailer to favour its chips over those of key rival Advanced Micro Devices between 2002 and 2007.

Who knew that the world of microchips was so cut-throat? If this is true, Intel should have to pay millions IMO.

(is typing this from an AMD powered laptop)

[GetBert]

I wonder if any Intel people will end up inside.

[Charlotte Ryberg]

I have been quite observant of the share of the market since I found it difficult to find systems with rival chips. I was once envisaging on a laptop with a Transmeta Crusoe processor, without much luck.

Now I am wondering whether it will be Intel Outside if the court case succeeds and they are forced to make compromises to make up the share. Virtually all my PCs bar one have Intel, the other being an AMD.

[Fassitude]

I wonder if any Intel people will end up inside.

Boo-urns.

[Andaluciae]

Paying people to buy your stuff?

[Rhodmhire]

Paying people to buy your stuff?

A sign of success.

Well, if you're selling your body for sex, that is.

[Tsalland]

I have a friend who is high up in Intel... Then again, he's a scientist, not a businessman.

[Svenen]

This is ridiculous. How are businesses supposed to keep a competitive edge if they can't use bribery and threats?

[H N Fiddlebottoms VIII]

This is ridiculous. How are businesses supposed to keep a competitive edge if they can't use bribery and threats?

Brainwashing? Use car bombs to kill scientists who work for rival corporations? Frame rival executives for tax fraud and sexual misconduct? Have the pope excommunicate all who stand against you? Devour their young? Have sex with their wives, so that they will unknowingly raise your children as their own? Burn down their villages?
Their are any number of ways to win in the corporate world. Or medieval Europe, I've actually forgotten what I was talking about.

[Svenen]

Their are any number of ways to win in the corporate world. Or medieval Europe, I've actually forgotten what I was talking about.

Let us be thankful we have commerce. Buy more. Buy more now. Buy. And be happy.

[greed and death]

Paying people so they buy your stuff ?
I thought that was Keynesian.

[Lord-General Drache]

Have they tried bribing the feds who brought the lawsuit yet?