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Intel Pays $6.5 Millions to Settle Lawsuit

Intel made an agreement to pay $6.5 Millions in order to settle an antitrust lawsuit that accused the largest chip maker for paying billions in kickbacks and threatening computer makers, in order to continue its dominance.

In November 2009 a case was brought by Andrew Cuomo, the attorney general of New York at the time  (now governor of New York) against Intel. The current attorney general, Eric Schneiderman, took the case when Andrew Como became governor.

The suit that was the topic of the settlement involved Andrew Como accusing Intel of violating federal and state antitrust law. The antitrust law was violated by a ”systematic worldwide campaign” attempt to intimidate customers, at Advanced Micro Devices, Inc expense, into buying Intel’s personal computer chips instead. Advance Micro Device, Inc is a rival company of Intel.

The settlement that Intel has been ordered to pay is less than five hours of profit for the company, which is based in Santa Clara, California. The company’s net worth for 2011 was reported to be twelve point ninety-four billion dollars. Although Intel has stated that they are happy to settle the lawsuit and pay what the judge ordered, the settlement did not order Intel to admit they did not do any violations or admit to allegations of the law nor do they have to any changes made to the way Intel does business.

Intel has always stated that their business practices were lawful, beneficial, and pro-competitive to the consumers. Andrew Como had contended in his antitrust suit that Intel had either coerced or bride computer makes such as Hewlett-Packard, International Business Machines Corp, and Dell, Inc plus threatened retaliation. He also alleged in the suit that the Chief Executive of Intel, Paul Otellini, was aware of some of the activity that was improper.

Intel, at this time, is appealing a one point zero six billion euro (one point forty-one billion US dollars) fine that was imposed by regulators in Europe in 2009 for allegations of anticompetitive conduct. In 2010 a case was settled with the Federal Trade Commission in which Intel had been accused of preventing any competition in microprocessors unlawfully.

In addition, in 2010 another federal judge in Delaware approved the Intel shareholders settlement. The settlement called for more than forty corporate governance changes. This included Intel creating a compliance committee to monitor any antitrust litigation. Just a little after Andrew Como made his suit in 2009. Intel had agreed to a settlement of one point twenty-five billion dollars to Advanced Micro Devices in order to settle all of the legal disputes that were outstanding Intel had with its rival.

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