ALBANY, N.Y. New York Attorney General Andrew Cuomo is investigating possible violations of state and federal antitrust laws by Intel Corp., the world's largest manufacturer of computer microprocessors.
A Cuomo spokesman said subpoenas were being delivered Thursday seeking information on whether Intel coerced customers to exclude Advanced Micro Devices Inc., known as AMD, from the market for a specific computer processing unit.
Cuomo said his preliminary review showed a need for a full investigation.
Intel has operations worldwide and employs 300 workers in its Riverton location and approximately 1,800 in its Lehi-based joint venture with Micron Technology, IM Flash Technologies.
The subpoenas seek data about Intel's pricing strategies and whether Intel penalized computer makers, cut off competitors' distribution channels, and improperly paid customers for exclusivity.
"Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation," Cuomo said.
Intel said it hasn't broken any laws, despite several legal actions under way against it around the world. The company believes the legal moves are driven by AMD, its closest competitor.
Intel spokesman Chuck Mulloy said Cuomo's concerns mirror those in a lawsuit AMD filed against Intel in federal court in Delaware in 2005. The case is scheduled to be heard in April 2009, Mulloy said.
AMD spokesman Michael Silverman said the company believes Intel is engaging in illegal practices and regulators around the world are finding evidence of it. Silverman said the loser is the consumer.
At issue in Cuomo's probe is whether AMD has a fair chance to supply its X86 computer processing units for desktop and laptop computers and servers. Cuomo says Intel commanded 80 percent of the $30 billion market.