Intel in Hot Water with New York

While Intel — the world's leading microprocessor manufacturer — is facing investigations by the European Commission, South Korea, and Japan over it's trade practices, the U.S. has been a relative safe haven. That's all changed, with the announcement last week that New York State will begin an investigation into whether the company's competition tactics against AMD went too far.

The decision comes some months after the Chairman of the Federal Trade Commission, Deborah Majoras, refused to open an investigation into Intel's practices, despite a push by other members of the Commission and Congress. NY Attorney General Andrew Cuomo says the investigation will look into allegations that Intel acted as a monopoly to stifle innovation and prevent competitors like AMD from obtaining a share of the market. The probe is broadly similar to one currently under way by the European Commission as well as charges filed by South Korea's Fair Trade Commission. A similar case brought in 2005 by Japan's Fair Trade Commission found that Intel had violated Japanese antitrust laws.

U.S. Senator Charles Schumer spoke out saying that the FTC had failed in refusing to investigate, and called for the agency to wake up and stop practices harmful to U.S. consumers.

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