New York attorney general sues Intel; accuses chipmaker of using bribery and coercion to crush competition

New York Attorney General Andrew Cuomo this morning announced an antitrust lawsuit against dominant computer chip maker Intel, alleging the company bribed, threatened and cheated to maintain its dominance in the marketplace.

Intel, Cuomo said, bullied its business partners and pushed aside competition --hurting consumers who could have benefited from the cost savings that comes with a competitive environment. Intel's chips are the guts of the vast majority of PCs.

"Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," Cuomo said in a statement. "Intel's actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices. These illegal tactics must stop and competition must be restored to this vital marketplace."

In the lawsuit, Cuomo alleges: "Intel has distorted competition and harmed consumers, depriving them of the lower prices and increased rates of innovation which competition would have yielded. Absent Intel's illegal acts, prices would likely have been lower, product innovation more dynamic, and consumer gains greater."