Intel is back in the hot seat after being nailed with a record $1.45 billion antitrust fine in the EU earlier this year. The chipmaker has been sued by New York Attorney General Andrew M. Cuomo in an antitrust case with similar grounds.
In the latest suit, Intel faces allegations of abusing its dominance in the chip market to smother its main rival, AMD. Cuomo claims that Intel pressured PC manufacturers into limiting their use of AMD processors -- which is exactly why Intel was fined in Europe. "Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," Cuomo said. Assuming the accusations are true, Intel not only unfairly restricted potential competitors, but also deprived consumers of better products and lower prices.
Intel denies any wrongdoing, and has appealed the European Commission's ruling. The recent filing is the first formal antitrust action against Intel by any US government agency in over a decade. The FTC began investigating the company in 2008, but has not initiated formal proceedings.