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Sidney 28th June 2005 18:01

AMD sues Intel, the monopolist
AMD has filed an antitrust complaint against Intel, alleging all sorts of unsavoury practices, and judging that from the fact that it was filed in court rather than in a blog, I would guess AMD thinks it is illegal.

AMD has gone as far as to set up a web site about the complaint. I guess this means it is going to be a pretty public fight.

No punches are pulled. Pay close attention to the bullet points, some are really juicy. If you really want dry, read the complaint itself, it is 48 pages of legalese, guaranteed to put one to sleep. There will also be a press/analyst conference Tuesday morning, and more details are bound to emerge.

AMD said Intel engages in worldwide coercion of customers to stop them dealing with AMD.

The 48-page complaint says 38 companies have been victims of coercion by Intel – including names such as Sony, NEC, Compaq, Toshiba and Dell.

AMD chief, Hector Ruiz, said, "customers deserve freedom of choice and the benefits of innovation – and these are being stolen away in the microprocessor market." People from "Osaka to Frankfurt to Chicago pay the price in cash every day for Intel’s monopoly abuses," he complained.

AMD says Intel has paid Dell and Toshiba huge sums not to do business with AMD. It says Sony was paid "millions for exclusivity" and as a result AMD’s share of Sony’s business went from 23 percent in 2002 to 8% in 2003, down to 0% today.

It claimed Intel paid NEC several million dollars for caps on NEC's purchases from AMD. And it further complains that, when AMD succeeded in getting on the HP retail roadmap for mobile computers, "Intel responded by withholding HP’s fourth quarter 2004 rebate check and refusing to waive HP’s failure to achieve its targeted rebate goal".

It said that in 2000, then Compaq CEO Michael Capellas said that because of the volume of business given to AMD, "Intel withheld delivery of critical server chips. Capellas, says AMD, told the company "he had a gun to his head," and had to stop buying AMD.

Papers were filed with federal district court for the district of Delaware, under Section 2 of the Sherman Antitrust Act, Sections 4 and 16 of the Clayton Act, and the California Business and Professions Code, AMD said in a statement.

No matter what the outcome, this one is most assuredly going to provide as good a show as the Microsoft DOJ trial. Fights like this always get nasty quickly, and that means airing of all the industry dirty laundry. What you see today is the tip of the iceberg. Stay tuned, it is going to be a fun ride. µ

* BUT for Hector to start off his statement by saying that the microprocessor is the brain of every computer is a quip too far.

jmke 28th June 2005 18:35

finaly some action!

if Microsoft is sued for having a Monopoly on softs, then Intel should be handled the same

Sidney 28th June 2005 18:56

Informed consumers will prove Intel practice to be fruitless....... unfortunately even the best in the tech business fall prey to greed.

Sidney 28th June 2005 21:00

THE POOR HACKS in Silicon Valley were summoned into an AMD conference in Pacific Time first thing. We're listening to it. They can't be as tired as we are, having covered this all day.
AMD said it wasn't a whiney competitor but wants to break Intel's monopoly, and is making serious allegations, although it didn't talk to Chipzilla about what it was doing, beforehand. No surprise there, then.

A man called Chuck Diamond, who appears to be an AMD legal spinner, said: "We see treble damages for the losses and it would be irresponsible for us not to seek damages. But this is not about money. This is about Intel releasing its iron grip. We want fair competition."

AMD, he added, wanted journalists to know about this. Well, we do, we do.

Diamond AMD Geezer said: "The next step is discovery. We have asked 40 major industry players worldwide to release their emails. We expect to go pedal to the metal. We expect Intel to drag its feet. The government got the MS case to trial in 18 months. We want to get this trial going in 06."

AMD had already issued those subpoenas to many PC vendors. Sony was successful selling PCs in Europe based on both AMD and Intel tech. But Intel went to Japan and pressured Sony, AMD alleged. "Intel will huff and puff but will not blow the house down," said Diamond. The OEM market is hostage to Intel, he added. AMD is trying to drive the "cost of solutions down". That may well be, but what the heck is the $1,031 price tag on the latest FX-57? AMD claims it has forced Intel to its knees. We're still awaiting Intel's response. µ

* AMD LAWYERS had better not try and subpoena INQ journalists. We will fight that tooth and nail, and there will be blood, we assure you, if it tries.

It has become headline news now :)

This time, it may be for real ......... :super:

Sidney 28th June 2005 22:46

The audio conference will be available live and for 10 days after the conference call at

Sidney 29th June 2005 05:51

Here is what the senior editor from THG has to say.

I watched Kudlow & Company interview with AMD big boss Hector earlier today. From another popular show Mad Money, Cramer voiced AMD case was from a company did not have the right product, pricing and performance hence AMD products are not selling as good as Intel's; while Kudlow did not make any personal comments.

Judging from the interview, I sensed Mr. Hector should have chosen a company spokeperson rather than himself. Not that he couldn't speak well, he just does not have the "charisma" in front of the TV. Chaisma is important if you want others to believe in you. He failed to mention Athlon 64, Opteron Server chip, low thermal loss and anything that would lead to better product characterists than Intel. It was as if he was crying "Intel is a bully!" (strictly my feeling and nothing more).

Yes, AMD also made the bad decision right before this filing by rising the prices of recent X2 higher than Intel Dual Processor. By saying AMD processor is lower in price and did not get OEM builder business is a dumb act. The staffs of Mr. Hector should be fired.

However, the pricing we see can never be the same as the price Dell, HP, Sony, Gateway or any large OEM builders are actually paying. Unless you have a court order, we, the normal folks will never know. Neverthless, AMD executes should know, it is their job.

I certainly could understand a smaller company like Transmeta being eaten alive by Intel. AMD ain't small by any standard, smaller comparing to Intel; bigger than many neverthless.

So, I wrote an email to AMD another to Mr. Cramer. To AMD I said, focused on China and India markets where Intel does not yet have firmed foothold; get more PC enthusisasts support, hardware websites are good start; more attention to "white box" sales with focus on smaller system builders like in the good old days. To Mr. Cramer I asked to re-examine the situation and look deeper.

Even car dealers are selling Japanese and American cars at the same lot/location, there is win/win situation. So, why doesn't Dell sell both Intel and AMD, smell fishy to you? It does to me.

Faiakes 29th June 2005 12:01

I can only assume that since they are aware of how cstluy these can be that they have enough evidence to make a case.

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