Oregon Public Broadcasting

New York's attorney general filed an anti-trust lawsuit against Intel Wednesday -- following in the footsteps of other regulators in Europe and Asia. Kristian Foden-Vencil reports.

The lawsuit charges that Oregon's largest corporate employer, illegally abused its dominant position in the chip market to stop its main rival, AMD, from securing more business.

For example, prosecutors say Intel paid IBM $130 million to delay the release of a new server that used AMD chips.

At the same time, prosecutors say, Intel threatened to stall joint projects with IBM if it didn't comply.

In a conference call recorded by WNYC radio, New York Attorney General Andrew Cuomo claimed Intel used threats and coercion to preserve a stranglehold on the market.

Andrew Cuomo: "In Intel's market there were laws of supply and demand, instead it was the law of 'my way or the highway.'"

This spring, the European Commission fined the Silicon Valley company a record $1.4 billion for similar charges. Intel has appealed that fine and is denying these latest charges.