(Page 2 of 2)
Intel allegedly paid hundreds of millions of dollars to Hewlett-Packard to limit its sales of AMD-based computers to five percent, threatened HP that it would derail development of an important server technology, and agreed to pay HP $925 million to increase Intel's sales at AMD's expense.
Intel also paid IBM $130 million not to launch an AMD-based server product, threatened to pull funding for joint IBM-Intel projects, and pressured IBM to sell an AMD-based server only on an unbranded basis, the suit says.
New York's suit may be the first government action in the U.S., but it likely won't be the last. "I wonder if this is the precursor to other state attorneys general and the federal government getting into the mix," Charles King, principal analyst with Pund-IT, said in a telephone interview.
If this suit or others drag on for some time, Intel may wind up with a seriously damaged reputation. And while customers may not have anywhere else to go, Intel faces a long-term risk that customers may start to view Intel as a "black hat." That might create pent-up demand for an alternative, much as Microsoft suffered at the hands of open source and Mozilla.
"At a certain point, it may be better to settle and move on and promise you won't do anything like this again, rather than continue to fight," King said. "But at this point, it looks like Intel will have plenty of opportunities to continue protesting their innocence for quite a while."