NEW YORK - NEW York's attorney general filed an antitrust lawsuit against Intel Corp on Wednesday alleging the US computer chip giant engaged in illegal practices to dominate the market.

'Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,' Attorney General Andrew Cuomo said in a statement. 'Intel's actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.'

Mr Cuomo's statement said the suit accuses Intel of violating state and federal anti-monopoly laws by engaging in 'a worldwide, systematic campaign of illegal conduct' in a bid to maintain a monopoly in the market for microprocessors.

The suit is the latest legal challenge for Intel, which is already being investigated by the US Federal Trade Commission and has been sued by its main rival Advanced Micro Devices (AMD) in a case expected to go to trial next year.

European Union antitrust regulators fined Intel a record 1.06 billion euros (S$2.2 billion) in May, claiming the company abused its stranglehold on the semiconductor market to crush AMD. Intel denied the charges and has appealed the EU ruling.

Intel spokesman Chuck Molloy, rejecting the latest allegations, said: 'We disagree with the New York attorney general. Neither consumers, who have consistently benefited from lower prices and innovation, nor justice are being served by a decision to file a case now.' -- AFP