Intel, world’s largest microchip maker, has been sued by the New York Attorney General Andrew Cuomo for using coercion and bribery over other companies. In order to remain dominant in the world’s market and at the same time, squeeze the existence of its rival Advanced Micro Devices, ADM. This lawsuit has also been followed by a record fine for anti-competitive behavior by the European Commission.
After twenty months of thorough investigation it was finally proved how Brands such as Dell, Hewlett-Packard and IBM agreed to choose Intel microprocessors over any other company simply because it offered rebates.
“In Intel’s market, there were no laws of supply and demand,” said Cuomo. “Instead, it was the law of ‘my way or the highway’.”
ADM had presented its complaints in front of the Attorney General, Intel had also been paying Incentives so that manufacturers preferred its Chips rather than using any other company’s, thus awarding Intel 70% of the worlds market. If customers marketed any other products using chips from ADM then Intel instantly withdrew its product. ADM had been accusing Intel from quite some time now thus accusing Intel of its illegal practices with the motive of squeezing it out of the market.
“Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,” said New York Attorney General Andrew Cuomo, 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.”
On the other hand, Intel refused to comment on the New York state lawsuit, but at the same time has vigorously defended its practices claiming the fact that offering rebates has been beneficial for the consumers as it lowered the original prices. Intel is also appealing the European Union antitrust ruling.
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Intel probably learned these tricks in Pakistan. And if they did, they will never get caught. Because guess what, they will bribe their way out of this case.
I stopped buying intel chips after they successfully foiled the “One Laptop Per Child” program.