Intel sued over bribe claims

16 November 2009

16 November 2009 | Jake Kanter

The New York attorney general is suing technology firm Intel over accusations of bribery and coercion.

Andrew Cuomo filed a lawsuit this month, claiming the microchip supplier was involved in a "systematic campaign of illegal conduct" to maintain its "stranglehold" on the market. Intel rejected the accusations and said it would fight the lawsuit.

Cuomo began his investigation in January last year. He said Intel had secured exclusive deals with computer makers in exchange for payments, or "rebates", totalling billions of dollars. He also accused Intel of punishing customers if they were found to be working too closely with its rival suppliers. Alleged tactics include cutting off illegal payments or directly funding the computer makers' competitors. "These illegal tactics must stop and competition must be restored to this vital marketplace," Cuomo said.

An Intel spokeswoman said: "We disagree with the New York attorney general. 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. Intel will defend itself."


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