AMD sues Intel; says rival coerces PC makers to get inside
posted Jun 28th 2005 9:40AM
In a move that's sure to bring up many a fond memory of the
Microsoft antitrust battles from a few years back, AMD is suing Intel under the premise that the chip giant uses
coercive tactics to stop customers from buying AMD processors. Uh, AMD's just now getting clued into this? According to
the complaint, most of the major PC players — including Dell, Compaq and Sony — have been victims of Intel's coercion
(we assume they didn't twist Steve Jobs' arm, though).
Some of the specific charges include claims that after Sony was paid off, AMD's share of Sony's processor business
dropped from 23% in 2002 to zero today. How this will play out is anybody's guess; Microsoft, we recall, got a slap on
the wrist from the U.S. Department of Justice. But a judge sympathetic to AMD's case could theoretically hit Intel
hard.
One of them needs to buy the other...
If it's too hot in the kitchen, get out.
Yes, good. Finally!!!! I hope AMD gets the justice it deserves!! GO AMD!!
You know, I might see where AMD is coming from.... but I am kind of getting tired of all these companies who just go around slapping their competitor with lawsuits. Man, it's like every week.
Do I think AMD should have a more fair oppurtunity in the processor market? Sure. Do I think they should sue Intel because they don't? Not really.
I'm suprised it took this long to happen.
Intel hasn't had an innovative new idea in years, and only recently had to ape x86 64-bit tech from the Athlon line as well as jackass 2 CPU cores on a single die and further shoehorn out to the industry.
I really wonder how much Dell pays per processor compared to say HP or Alienware who also deals in AMD chips as well as Intel. Can we say unfair trade practices? Actually, the bigger question in Intel's server line (Xeons and, maybe Itaniums). How much is Dell paying for those compared to other's who double-dip in the CPU market.
I know Microsoft got a slap on the wrist last time, but what if it happened now with all of Windows and the Windows/Office/IE/Media Player API security problems?
Granted, I do not like or support solving everyone of our problems in front of a judge a jury, but this should have been look at and investigated for awhile. Intel really needs to start sweating now. Just about every chip AMD has lays the smack down to it's Intel conerpart, and now this?
Is this lawsuit starts leaning a bit in AMD's favor, will Dell finally break out the Dell Athlon X2 line? Will we see commercials of, "Dude! You're getting a Dell X2!!"?
Took long enough...
Mack Swift, don't be surprised, AMD tried it back in 2003 and the FTC threw the case out for lack of evidence. After reading their complaints this time though, it seems like they have a much stronger case this time around.
Mr.Swift when talking about how much Dell pays compared to HP and especially Alienware, Intel can easily defend its stance with one word:
Volume.
And god I wish companies would always stop whining when things don't go there way. Intel makes smart contracts and AMD got hosed, goto school and learn how to make a good contract or get a better legal team and find ways around Intels current contracts. Everyone does exclusive contracts(how many restaurants serve both coke and pepsi?, how many sports teams have both reebok and nike?, how many satellite radio stations have all the sports?), it just seems to only matter when one player is bigger than the other which is utter BS.
Players get big by playing the game better. AMD should learn that or as Ian said "get out".
Yet another pathetic tech company that thinks it can get in the courts what it can't get in the real world. The Japanese must be just laughing their bums off watching the American tech market lawyer itself into oblivion.
It's about time that AMD gets their fair share of the market. They have been building superior (if hotter) chips with lower prices for quite some time now.
AMD has waited this long because they have been busy working their asses off to create great processors, and obviously not enough resources have been available to pursue other endeavors (like marketing for one - have you ever seen an AMD commercial on TV? NOPE!). I am an AMD fan, (and who doesn't like the "underdog"?), and am always sad to see so many OEMs pass up their processor line, especially when they are whooping up Intel's current crop in performance! Perhaps, now that AMD is really blowing the crap out of Intel products, they are taking a quick breather to figure out ways of increasing market share. Kind of tough to do with a the Intel giant strong arming OEMs into using their processors. I speak mostly of Dell, being the number one manufacturer of PCs in the world. AMD has been trying to get a share of the action, and Dell's CEO has flirted with the idea, only to have something come along that reassures the Dell/Intel alliance stays firm; that *something is a whap upside the head from granddaddy Intel keeping dell on a short leash.
Come on Dell, rebel against Intel, make AMD based machines!
"Uh, AMD’s just now getting clued into this?"
I have an idea - why dont you put comments like this in ALL your articles. Ooops, you already do. Pretty funny. Why do you care anyway - you all future MACiNtelists (whiners).
Posted Jun 28, 2005, 10:04 AM ET by Jake T
One of them needs to buy the other...
Please Jake, nothing stifles innovation more than the lack of competition. Should nVidia buy ATI? VerizonWireless buy Cingular? Only one company for each tech sector? Dumbest idea ever! Intel and AMD need to stay separate and competitive. AMD is still the seriou underdog despite superior ideas and processors.
Posted Jun 28, 2005, 11:09 AM ET by Scott Johnson
It's about time that AMD gets their fair share of the market. They have been building superior (if hotter) chips with lower prices for quite some time now.
True, but I don't think AMD chips have been "hotter" than Intel's. Both have made some pretty HOT chips!
Posted Jun 28, 2005, 11:01 AM ET by Myria
Yet another pathetic tech company that thinks it can get in the courts what it can't get in the real world. The Japanese must be just laughing their bums off watching the American tech market lawyer itself into oblivion.
Come on Myria...while I agree frivolous lawsuits can get out of hand, this doesn't mean that all lawsuits are wrong. Companies get big, and strong arm their way into markets at times using questionable tactics. Doesn't make them "evil", but something needs to keep them in check (Microsoft, Intel, etc). Yeah, the Japanese are laughing, becuase their industries have so much government protection that such concepts are laughable (that a giant corporation isn't above the law). The often-times untouchable Japanese companies, are usually the one's calling the shots, and not the government.
Just for the record, Intel chips are all far hotter than their amd counterparts. The only chip really worth considering for the future from intel is the Pentium M, which is incredibly based off the p3!
Without the support of oems i guess amd will end up on the bottom even if their chips are clearly superior overall (dont believe me? - check out http://www.tomshardware.com/cpu/20041221/index.html and make up your own mind).
Just for the record, Intel chips are all far hotter than their amd counterparts. The only chip really worth considering for the future from intel is the Pentium M, which is incredibly based off the p3!
Without the support of oems i guess amd will end up on the bottom even if their chips are clearly superior overall (dont believe me? - check out http://www.tomshardware.com/cpu/20041221/index.html and make up your own mind).
Number 8 Malfoy Roark
I sort of agree on your volume remark, but if those contracts being signed between say Dell and Intel are in violation of fair trade laws, then they're in trouble. Here's a list of points from the X-Bit Labs (http://www.xbitlabs.com/news/cpu/display/20050628010541.html) article on the lawsuit, and one of the points state that PC manufacturers are being forced to purchase an excessive number of Intel CPUs.
AMD said Intel’s illegal and unfair actions include the following:
* Intel has forced major customers into exclusive or near-exclusive deals;
* Intel has conditioned rebates, allowances and market development funding on customers’ agreement to severely limit or forego entirely purchases from AMD;
* Intel has established a system of discriminatory, retroactive, first-dollar rebates triggered by purchases at such high levels as to have the practical and intended effect of denying customers the freedom to purchase any significant volume of processors from AMD;
* Intel has threatened retaliation against customers introducing AMD computer platforms, particularly in strategic market segments;
* Intel has established and enforced quotas among key retailers effectively requiring them to stock overwhelmingly, if not exclusively, Intel-powered computers, thereby artificially limiting consumer choice;
* It has forced PC makers and technology partners to boycott AMD product launches and promotions;
* Intel has abused its market power by forcing on the industry technical standards and products which have as their central purpose the handicapping of AMD in the marketplace.
This litigation follows a recent ruling from the Fair Trade Commission of Japan (JFTC), which found that Intel abused its monopoly power to exclude fair and open competition, violating Section 3 of Japan’s Antimonopoly Act. These findings reveal that Intel deliberately engaged in prohibited business practices to stop AMD’s increasing market share by imposing limitations on Japanese PC manufacturers. Intel did not dispute these charges. The European Commission has stated that it is pursuing an investigation against Intel for similar possible antitrust violations and is cooperating with the Japanese authorities.
A few other well made points as well as some of the tactics Intel uses are also pointed out in the article.
So, no, volume isn't the answer. Just about anyone who reads these tech blogs and follows the industry can think back and realize, that yeah, Intel has been a dirty rotten scoundrel and AMD does deserve a bit more lovin.
Remember a few years back at the height of file-sharing and the RIAA's bitching about how MP3s were hurting it. At the same time, a bit buried, was the exclusive contract that Best Buy and the RIAA entered into. Best Buy with the recording industry's blessing, bought low volumes of CDs under contract in order to articifically inflate prices. It was a contract based on volume. Yes a contract, but an illegal one. They were both fined by the FTC and Justice Department, and I believed if you had music reciepts from a certain time frame you recieved store credit or something. THough not many remember this as the RIAA was screaming NAPSTER at the top of their lungs.
Same issue with Intel. They're flooding the market and their OEMs with chips so much that their isn't room for AMD.
Not only does competition spur innovation but keeps prices lower, unless they both agree to keep prices high. I hope that they are given equal footing, but better business is better business. Same reason why I think the rate limits on voip to protect new companies is a mixed blessing. If you can crush the competition then you should be allowed... and I wouldnt mind voip becoming practically free in an attempt to wipe new companies of the planet, but once they're gone...
Some of the allegations sound like mafia tactics. For example "Intel CEO Craig Beret flew over to Taiwan to meet with ACER's CEO to threaten his company with sever actions in taking part in AMD's Athlon64 announcement" Sounds like a good mafia godfather story to me. I hope for AMD that Intel gets fined to its fullest extend. What a bustard of company! I will never buy another Intel inside system again.
AMD 4EVA&ALWAYZ!