Intel hit with antitrust lawsuit

4/11/2009 - 16:42

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Intel hit with antitrust lawsuit by Cuomo (4/11)

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NEW YORK (Reuters) - Intel Corp was sued on Wednesday by New York Attorney General Andrew Cuomo, who accused the world's largest chipmaker of scheming to maintain worldwide monopoly power in the market for microprocessors.

Cuomo said INTEL (INTC.NQ)violated state and federal antitrust laws by using illegal threats, bullying and coercion to maintain a "stranglehold" on the market for computer chips.

He said the company has for several years extracted agreements from large computer makers, including Dell and Hewlett-Packard Co for the exclusive use of its microprocessors, in exchange for "billions of dollars" of payments.

In a conference call with reporters, Cuomo said Intel's "my way or the highway" attitude hurt companies and consumers. "We intend to stop them," he said.

The lawsuit filed in Delaware federal court seeks to bar Intel from further anti-competitive acts, recover monetary damages, and other remedies.

Intel was not immediately available for comment.

In late morning trading, Intel shares were up 36 cents, or 2 percent, at $18.86 on the Nasdaq.

The case is New York v. Intel Corp, U.S. District Court, District of Delaware.

(Reporting by Jonathan Stempel; Editing by Derek Caney)

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