Wednesday, November 04, 2009

Antitrust Stupidity

The attorney general of New York state, acting without the consent of the other 49 states, has filed an antitrust suit against microprocessor manufacturere Intel

New York Attorney General Andrew Cuomo, has filed an antitrust lawsuit against the computer chip manufacturing giant Intel, accusing the company of engaging in a “systematic worldwide campaign of illegal, exclusionary conduct to maintain its monopoly power,” in the market for computer chips starting in 2001.
The complaint alleges that Intel paid hundreds of millions and in some cases billions of dollars in rebates to PC manufacturers in an attempt to limit their use of chips from rival Advanced Micro Devices. When PC companies appeared to be getting too close to AMD, Intel would, the complaint says, threaten them with retribution by withholding payments they were receiving from Intel.

Just imagine this scenario: Cuomo and some other promulgators get their way in the courts and squash Intel, giving an opening to companies in China or Japan who steal the customers. That's how the Democrats manage their domestic economic policies. They cut off America's nose just to spite its face.

It is time that all state and federal antitrust laws were reviewed and revised with full consideration of the international competitive environment. But don't hold your breath for the Democrats to do it.

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