WASHINGTON (Reuters) - The U.S. government accused Intel Corp of illegally using its market dominance to stifle competition, in a lawsuit that seeks to stop the marketing practices that have helped maintain Intel's status as the world's biggest chip maker.
The suit, filed on Wednesday, pushed Intel shares down 2 percent and boosted the stocks of competitors Advanced Micro Devices Inc and Nvidia Corp, which have accused the chip giant of anti-competitive behavior.
The U.S. Federal Trade Commission said Intel has been trying to shut out competitors in maneuvers that date back to 1999 -- the same year the agency settled a previous antitrust fight against the company.
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Feinstein disagreed with Intel's characterization of the remedies as unprecedented. Intel would not face financial penalties but the remedies would require a shift in its pricing structure, he said.
The FTC's complaint said Intel punished PC makers that bought chips from AMD or Via Technologies Inc and changed software to hurt the performance of competing CPUs, or central processing units.
"Intel threatened OEMs (computer makers) that considered purchasing non-Intel CPUs with, among other things, increased prices on other Intel purchases, the loss of Intel's technical support, and/or the termination of joint development projects," the FTC said in its complaint.
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While AMD has settled its dispute against Intel, graphics chip maker Nvidia has continued its fight, calling for scrutiny of Intel's graphics processing units (GPUs), often used in mobile phones, personal computers and game consoles.