contador web Skip to content

AMD accuses Intel of anti-competitive practices in lawsuit

COLLAB distinguished with the APDC / Siemens Innovation Award

AMD filed a lawsuit against Intel for alleged abuse of a dominant position in the microprocessor market with x86 architecture. The world’s second largest processor manufacturer claims to have evidence of a set of anti-competitive and coercive actions by Intel with at least 38 companies, including major PC manufacturers and distributors.

In the indictment, based on 48 pages and filed yesterday in the US judicial district of Delaware, AMD accuses Intel of implementing a set of measures with the clear intention of blocking the competitor’s possibilities for action.

This includes big discounts, funds allocated to marketing campaigns that benefit partners, exclusivity agreements that make any competitive proposal unfeasible and threats to companies that want to associate their image with AMD. The main targets of this strategy are large-scale PC manufacturers, system manufacturers, wholesale distributors and retailers, guarantee the charges.

The accusations are substantiated by some big names such as Toshiba and HP, cited as examples of AMD customers who gave up doing business with the manufacturer under pressure from the market leader, BusinessWeek quotes.

The court-delivered document even says that HP made it clear that it would only continue to work with AMD (in 2002) if it were willing to pay $ 25 million each quarter to offset Intel’s expected retaliation.

The complainant company claims that more important than financial losses are damage to competition in the market, which result from alleged anti-competitive practices. According to the company, these have been leading to an increase in the price of PCs, less choice in the market and a decline in levels of innovation.

«Customers anywhere in the world deserve freedom of choice and benefit from innovation and that is disappearing from the PC market,» justifies a statement by AMD President Hector Ruiz, quoted by Reuters.

It should be noted that the legal battles between the two companies are not new and since the 1980s there have been at least five lawsuits with some dimension involving the two companies and accusations of a monopoly position.

Related News:

2005-06-23 – Two thirds of the world’s most powerful computers run Intel

2005-01-12 – Intel reports higher than expected results in the fourth quarter of 2004

2004-12-22 – Worldwide chip sales grow 23 percent in 2004