Intel Corp.’s President and CEO Paul Otellini Wednesday addressed the antitrust lawsuit filed against Intel this week by Advanced Micro Devices. The AMD lawsuit asserted a number of complaints regarding the business practices of Intel and its customers.
“Intel has always respected the laws of the countries in which we operate. We compete aggressively and fairly to deliver the best value to consumers. This will not change,” Paul Otellini said.
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.
“Over the years, Intel has been involved in other antitrust suits and faced similar issues. Every one of those matters has been resolved to our satisfaction. We unequivocally disagree with AMD’s claims and firmly believe this latest suit will be resolved favorably, like the others,” added Intel chief.
“Intel believes in competing fairly and believes consumers are benefiting from this vigorous competition. AMD has chosen yet again to complain to a court about Intel’s success with a legal case full of excuses and speculation,” another statement by Intel read.
Comments currently: 6
Discussion started: 06/30/05 07:11:36 AM
Latest comment: 07/03/05 10:11:05 AM
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1.
"We compete aggressively...."
That have just explained everything to me....
I hope Intel loses....
[Posted by: kaz | Date: 06/30/05 07:11:36 AM]
2.
Intel like MS before them, will 'buy justice'. Everybody has a price.
It would restore my cynicism to see Intel punished, but I'm suspect they'll be some gentleman's agreement outside of court.
Best Case Scenario for AMD
Judge orders AMD acquisition of two of Intels fabrication plants, giving AMD equal playing field
Or Intel force to mass produce AMD processors and pay AMD royalities for every CPU sold.
Worse Case Scenario for AMD
Intel buys judge, Intel receives token fine.
[Posted by: Jase | Date: 06/30/05 04:54:40 PM]
3.
does this really matter?
I believe that Intel is doing some bad things, and AMD is just taking advantage of it to gain more ground. So in the end, I don't care.
[Posted by: who cares | Date: 06/30/05 05:04:04 PM]
+ expand thread (2 answers)
- collapse thread
Yes, this does matter. Competition forces innovation!
AMD does not have the financial backing of Intel, but it is more innovative. It is not large enough to compete with Intel sales-wise, so it is forced to actually think about new products instead of stealing them.
If AMD wins this lawsuit it MIGHT level the playing field a little, so to speak.
The bigger issue here is whether or not government can regulate business. We all know the answer to that is no. If the court steps in and makes Intel pony up the dough then it could be construed as discrimination against a company just because it is "successful".
[Posted by: mcnbns | Date: 06/30/05 07:48:41 PM]
It doesn’t matter to you? Do you really like of having to "choose" only one CAR manufacture, one TV manufacture, ... , hard disk, graphics cards, memory maker, DVDRW, get the point?
Every market segment needs competition, in order to get you innovation; it’s us that lose if this doesn’t exist. Heavy prices, bad quality, ....
Intel in the pass 2 years have been lagging behind AMD, a lot! And that doesn’t have made them lose market share, and why? People like worst products? And pricy ones? I don’t think so.
Intel can keep you way from buying an AMD system, but if it can keep their OEM builder from buying AMD, then it will be more difficult to you from buying an AMD system. I have been trying to buy one or two opteron servers without any success in my country, is AMD having difficulty manufacturing the opteron, I doubt, it’s the OEM that don’t sell. I will be buying 2 or 3 workstations soon and I don’t see no one selling them (OPTERON based, X2 or even a 4000+).
[Posted by: kaz | Date: 07/01/05 01:03:17 AM]
4.
actually, i use AMD but Intel always gets around it so i lost hope
[Posted by: who cares | Date: 07/03/05 10:11:05 AM]
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