AMD sues Intel

MarineCorps

MarineCorps

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AMD's lawsuit says that Intel's practices of rebates and subsidies, combined with punishment for PC makers who buy too many AMD chips, has harmed competition and restricted innovation




AMD has filed a lawsuit against Intel in the American courts accusing the chipmaker of forcing major customers to accept exclusive deals and withholding rebates and marketing subsidies to punish those customers who, it says, buy more AMD processors than agreed with Intel.

In the lawsuit, which was filed in the US District Court of Delaware, AMD charges that Intel also threatens retaliation against customers doing business with AMD, has established quotas keeping retailers from selling the computers they want, and forces PC makers to boycott AMD product launches.

In the 48-page filing, which has an exasperated tone, AMD highlights its efforts — most of which it claims were rebuffed — to persuade major original equipment manufacturers to use its processors. For instance, when AMD offered HP, the biggest computer maker in the world, a million processors for free, HP took only 160,000, said AMD.

In an open letter, AMD chief executive Hector Ruiz explained the lawsuit, saying: "Our competitor has harmed and limited competition in the microprocessor industry. On behalf of ourselves, our customers and partners, and consumers worldwide, we have been forced to take action."

For most competitive situations, this is just business, said Ruiz. "But from a monopolist, this is illegal."

Ruiz went on to say that Intel's behaviour is much more than meets the eye. "You may not have been aware, but Intel's illegal actions hurt consumers — everyday. Computer buyers pay higher prices inflated by Intel's monopoly profits. Less innovation is produced because less competition exists. Purchasers lose their fundamental right to choose the best technology available."

The lawsuit follows a call from Japan's Federal Trade Commission earlier this year for Intel to halt the practice of requiring PC makers to limit the use of competitors' chips in exchange for monetary rebates.

Intel, which accepted the recommendations, noted it disagreed with the agency's findings of fact underlying their allegations and the application of law in the recommendations.
Click to expand...

http://news.zdnet.co.uk/hardware/chips/0,39020354,39205918,00.htm

An intresting move. A million CPUs for free? And HP didn't accpet?!
 
2 comments:

1) So long as companies like 'Microsoft' can monopolize, so too will smaller companies like Intel.

2) Maybe Intel is just plain better. I wouldn't take a free AMD if I could afford an Intel - computer.

Anyway, crying over it is stupid. Especially after trying to give it away for free & still getting turned down. Of course, this is America - so they will probably win.
 
ainwood said:
I am an AMD fan - both my home PCs are AMD. But they complain about Intel being anti-competitive, then GIVE AWAY CPU's? :eh:

Giving things away for free to be part of bundled packages can also be seen as anti-competitive. Ask M$ re the media player issue.
Click to expand...
All businesses give stuff away, normally "buy X, get Z free" offers which the sales executives are authorised to offer at their own discretion, but also as free samples.

Because every vendor in the free world behaves that way, I do not think anyone can complain.

The Microsoft issue is different, and boils down to them monopolising the boot loader software. See the Be vs. Microsoft case for more details.
 
Intel chief executive Paul Otellini on Wednesday defended his company against new legal attacks from AMD.

AMD filed a lawsuit against Intel on Monday in US District Court in Delaware. The rival chipmaker claims that Intel is using monopolistic business practices, such as threatening retaliation against customers who do business with AMD. AMD is asking the court to impose punitive damages.

The man who recently replaced Craig Barrett as Intel's CEO said his company has been involved in other antitrust suits, has faced similar issues before and expects to come out on top of this one as well.

"Intel has always respected the laws of the countries in which we operate," Otellini said in a statement. "We compete aggressively and fairly to deliver the best value to consumers. This will not change."

Intel was able to stare down an antitrust lawsuit Intergraph filed against the chipmaking giant back in 2000. The case was eventually settled.

After a raid on its offices in Japan, Intel agreed to work with Japan's Fair Trade Commission (JFTC), which accused Intel of offering rebates to five Japanese PC makers — Fujitsu, Hitachi, NEC, Sony and Toshiba — in exchange for refusing to buy or to limit their purchases of chips made by AMD and Transmeta.

So far, no trial date has been set. Lawyers predict the lawsuit could take about 18 months to go to trial.

Meanwhile, AMD began running full-page ads in newspapers today to outline the reasons for its antitrust lawsuit and to issue a call to action.
Click to expand...


http://news.zdnet.co.uk/hardware/chips/0,39020354,39206451,00.htm


It gets even more intresting.

@ainwood: If offered a million CPUs for free wouldn't you take up the offer?
 
It took a lawsuit to even get AMD into the CPU industry, because of Intel's practices.

Think of the world without AMD....

:shudder:
 
I have my first AMD processor in the computer I just built. I think it is a great product and amazing for overclocking and gaming. I think Intel does have a strong hold over the cpu industry, but I still think a bigger issue is Microsofts grip on the OS and software industry.
 
I'm still on Intel's side. In a words undertsandable here:

Intel signed a Trade embargo with HP against AMD giving some luxuries for cheaper price.

Why don't they do the same? Start punishing customers? I'd suggest AMD doing the same things they accuse Intel to be doing. Would they succede? No. So they're suing.
 
Pentium said:
I'm still on Intel's side. In a words undertsandable here:

Intel signed a Trade embargo with HP against AMD giving some luxuries for cheaper price.

Why don't they do the same? Start punishing customers? I'd suggest AMD doing the same things they accuse Intel to be doing. Would they succede? No. So they're suing.
Click to expand...

Considering that Intel is under investigation or has been found to be guilty of anti trust violation in both the EU and Japan I wouldn't exactly claim this is all AMD.
 
please. if you guys looked at documents, you would agree that intel is artificially trying to maintain current market share.
 
Hrm, seems a bit like Microsoft, eh? Is Intel doing the whole Monopoly thing?

I am cheering for AMD. Their processor that I bought going on more then 3 years has worked fantastically, nary a problem. I would buy from them again. I definitely think AMD makes better products then Intel.
 
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