Intel settles New York antitrust case for $6.5m

San Francisco: Intel Corp agreed to pay just $6.5 million (Dh23.9 million) to resolve an antitrust lawsuit in which New York's attorney general accused the world's largest chipmaker of threatening computer makers and paying billions of dollars of kickbacks to maintain its market dominance.

The settlement ends a November 2009 Delaware case brought by Andrew Cuomo, then New York's attorney general and now governor. Eric Schneiderman, the current attorney general, took over the case when he succeeded Cuomo in that position.

Intel's $6.5 million payment represents less than five hours of profit for the Santa Clara, California-based company, based on reported net income of $12.94 billion for 2011.

Cuomo had accused Intel of violating state and federal antitrust law through a "systematic worldwide campaign" to bully customers into buying its personal computer chips, at the expense of rival Advanced Micro Devices Inc.

But the lawsuit lost much of its punch when US District Judge Leonard Stark said the state could not seek triple damages, and was allowed to pursue claims over just three years of computer purchases, not four or six as it had sought.

Jennifer Givner, a spokeswoman for Schneiderman, said the state's lawyers still believe their substantive claims have merit, but that "in light of the court's decision believe that no purpose is served by pursuing the matter further."

Intel said it was pleased to settle, and that the accord did not require it to admit to any allegations or violation of law, or make any changes to its business.

"We have always said that Intel's business practices are lawful, pro-competitive and beneficial to consumers," General Counsel Doug Melamed said in a statement.

Cuomo had contended that Intel bribed or coerced computer makers such as Dell Inc, Hewlett-Packard Co and International Business Machines Corp, and threatened retaliation.