Breaking: NY AG Cuomo Files Antitrust Lawsuit Against Intel

Breaking on Intel ... but one wonders what the motivation is for Cuomo to file a lawsuit against a California company and non New York-based computer makers..

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New York Attorney General Andrew Cuomo filed antitrust charges against Intel Corp. (INTC), alleging the company threatened computer makers and paid huge kickbacks to stop them using competitors' chips.

The attorney general alleges Santa Clara, Calif.-based Intel violated federal and state antitrust laws, according to a statement released Wednesday. The suit alleges that for several years, Intel sought to maintain its dominance of the computer-chip market by paying billions of dollars in kickbacks to computer makers under the guise of "rebates."

The suit also alleges Intel threatened computer-makers--including Hewlett-Packard Co. (HPC), International Business Machines Corp. (IBM), and Dell Inc. (DELL)--with retribution if they marketed products with chips made by competitors. Cuomo's office began its investigation into Intel's competitive practices in January of 2008.

Intel is being investigated for possible antitrust violations on multiple continents, and by numerous regulators, including the Federal Trade Commission. Intel recently appealed charges brought by the European Union, which levied on it a EUR1.06 billion ($1.56 billion) fine and released emails regarding the complaint. Intel's main competitor, Advanced Micro Devices Inc. (AMD)is also suing Intel privately. Intel engaged in "a worldwide, systematic campaign of illegal conduct," Cuomo said in a statement. "Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market." The attorney general's lawsuit was filed in Delaware Federal Court.