CCIA’s Reaction To New York's Antitrust Suit Against Intel

November 4, 2009

The state of New York has filed an antitrust lawsuit against Intel saying the company threatened computer makers and paid big kickbacks in exchange for not using competitors’ chips.
The Computer & Communications Industry Association said this suit filed by New York Attorney General Andrew Cuomo is a strong case that underscores what Intel has been doing is wrong. The following statement can be attributed to CCIA President & CEO Ed Black:
“Cuomo has released additional evidence today that involves emails from the highest executives at Intel. The internal emails illustrate that contrary to Intel’s assertions, the microchip manufacturer knew that its actions potentially violated the law. Intel certainly had other clues more recently including the findings against them by antitrust officials in Japan, Korea and the EU. We hope this action by U.S. authorities convinces Intel to change its business strategy – not just its PR strategy.
“It is time for Intel to admit its misconduct, repair the harms it has perpetrated and change its business practices. Its legal strategy is clearly not working and its broad claims of innocence are being shown to be more hollow each passing day. Intel is a great American company, which unfortunately made poor choices. Continued denial of reality undermines its ability to have its conduct treated as aberration, rather than central to its character. The quicker Intel owns up to its actions the quicker it, and the entire computer industry, can move on. I am confidant that by returning to a business strategy based on innovation and fair competition, not coercion and bully tactics, Intel can salvage its good name and still be successful. In the process, consumers, innovation and the economy will greatly benefit as well.

“New York has certainly felt the cost to its economy because of deregulation and lack of oversight on questionable conduct by dominant companies. Cuomo’s actions today are a step to encourage companies to follow the law. It helps New York, the nation’s economy and all consumers when competition is preserved and innovation thrives.”
 

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