New York Attorney General Andrew Cuomo has filed a federal antitrust lawsuit against microprocessor maker Intel, alleging that the company engaged in a "systematic campaign" of illegal conduct to protect a monopoly.
“[P]unishment for Intel may mean that Microsoft is next and a conviction is likely easy to achieve.”Some months ago we saw a front group of Microsoft (ACT) defending Intel in Europe because of the implications for Microsoft. As we explained back then, punishment for Intel may mean that Microsoft is next and a conviction is likely easy to achieve. Microsoft is still under investigation in Europe.
"Kickbacks" is the word one of our readers uses to describe what Intel relied on. "Intel gave Dell $6 billion dollars in kickbacks over five years," he adds. "Sometimes the kickbacks were the largest source of profit to Dell, accounting for more than 1/3 of their earnings in some quarters. IBM and HP were also paid off and all but AMD reaped the rewards of high margins through collusion. Vendors who offered AMD chips would be denied hundreds of millions of dollars in "rebate" money."
The links he gives are:
● Wall Street Journal: Dell Got $6B Via Secret Intel Pact
● BusinessWeek: Intel-Dell Dealings Under Fire
● CNET: N.Y. lawsuit details Intel's 'largesse' toward Dell
Those Dell kickbacks are not news by the way. Boycott Novell wrote about them over two years ago.
"Dell also locked in a lot of private and government monopolies in the same years," our reader says. "State governments, for example, signed exclusive deals with Dell, barring all other vendors from consideration. [University] Researchers had to prove special needs to buy anything else."
Does that sound familiar?
"Barring all other vendors from consideration..."
Well, Microsoft engages in the same tactics, which are illegal. One country which is affected by it is Hungary. For some background:
Despite a struggling economy and public debt, the Hungarian government continues to spend millions on Microsoft licences when cheaper alternatives exist, say open source groups
With governments across Europe including the UK looking to slash public spending to tackle budget deficits resulting from bank bail-outs and other effects of the recession, open source could be an important way to cut IT costs, according to free software advocates.