New York starts Intel chip probe

Intel, the world's biggest computer chipmaker, is being investigated by New York Attorney General Andrew Cuomo. Mr Cuomo is looking into claims that Intel forced customers not to deal with rival Applied Micro Devices (AMD). Intel has been cutting its prices and looking at ways to improve efficiency as AMD has stepped up its efforts to become the world's top producer. Mr Cuomo has issued a subpoena seeking documents and information from Intel over its conduct regarding AMD.

"Protecting fair and open competition in the microprocessor market is critical to New York, the United States, and the world," Mr Cuomo said. "Businesses and consumers everywhere should have the ability to easily choose the best products at the best price, and only fair competition can guarantee it. Monopolistic practices are a serious concern, particularly for New Yorkers who are navigating an information-intensive economy."

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19 Comments

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I'm not suggesting it was probably the only reason. However, I am sure it played a part. Take a look at Intel's whole strategy they have publicly available. It is not built around coming out with responses as fast as possible. It's about coming out on a timetable, namely a new Fab every two years, with a set on improvements in the intervening year.

Let me see if I have this correctly. Intel entered into agreements where a supplier/VAR/whoever would become an Intel only shop and for that concession Intel would give them a lower price or a rebate (works out to the same thing.) If these companies did not want to enter into such an agreement they would have to buy their chips at the same price as the rest of us consumers.... I fail to to the problem here. It sounds as if the end companies are a victim of their own greed. As for the "investigation" this is a farce. At worst it is a quest for money by some government officials, or at best it is a competitor whining that they didn't get to the companies first. The only thing that could come of this is higher prices. If the commission finds against Intel then they will lay a heavy fine which will be paid by us.

As for Intel, by all indication they are trying like mad to make sure that AMD has every chance to stay in the running. they have delayed, and delayed the Peryns. They have also delayed their next generation. Contrary to popular belief, it is in Intel's best interest to have AMD around as a competitor. Both to keep the politicians off of their backs, and also to push themselves to better products. Of course this doesn't mean that they are going to outright coddle AMD. It is a competition after all. But ask any runner if they would preffer to run alone or against some one. They will always preffer the competition, doesn't mean they are going to stop and wait for their opponent to catch his breath or stop and let him get ahead.

Are you suggesting that Intel delayed there chips to give AMD a chance to compete? Give me a break. Intel delayed because they could.

At our store we were threatened, intimated and bribed to sell more Intel product and less AMD product. Being small we needed intel to survive more then AMD so we complied.

hardgiant said,
At our store we were threatened, intimated and bribed to sell more Intel product and less AMD product. Being small we needed intel to survive more then AMD so we complied.


Proof or it didn't happen :P

Lt-DavidW said,
So basically Intel are selling their processors too cheap, thus hurting the market?

Did you even read the article?

Of concern is whether Intel compensated customers for being exclusive and penalised those who were not.

LipSmacker said,
Did you even read the article?

No, I submitted it accidently.

LipSmacker said,
Of concern is whether Intel compensated customers for being exclusive and penalised those who were not.

Which would be referring to rebates. I can't recall Intel ever offering rebates on their CPUs, at least not in the UK.

Lt-DavidW said,

No, I submitted it accidently.


Which would be referring to rebates. I can't recall Intel ever offering rebates on their CPUs, at least not in the UK.


when they speak of customers, I believe they are speaking about OEMs and companies not your individual customer. you personally woud have never seen a rebate or anything like that from Intel.

BBinder said,
Applied Micro devices????? i think someones had a bit too much to drink :P

ya rly.

advanced micro devices tbh!

This doesn't surprise me, but I hope Intel didn't really go that route. I think there is room for both companies in this market. I use both at home and work, and I prefer AMD, but honestly I can't really tell much of a difference. I've always been able to get a better price on AMD's chips.

In capitalism the goal is to eliminate any, and all, competition and thus corner the market.... I'm not surprised by this either since they just recently tried to screw over the OLPC program as well.