AMD files antitrust suit against Intel
Hot off the wire:
SUNNYVALE, CA - June 28, 2005 - AMD (NYSE: AMD) announced today that it
filed an antitrust complaint against Intel Corporation ("Intel")
yesterday in U.S. 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. The
48-page complaint explains in detail how Intel has unlawfully maintained
its monopoly in the x86 microprocessor market by engaging in worldwide
coercion of customers from dealing with AMD. It identifies 38 companies
that have been victims of coercion by Intel - including large scale
computer-makers, small system-builders, wholesale distributors, and
retailers, through seven types of illegality across three continents.
There's further coverage at CNN
, and theres an "open letter" from Hector Ruiz
on AMD's web site explaining the company's complaints against Intel. Among them:
Forcing major customers to accept exclusive deals,
Withholding rebates and marketing subsidies as a means of punishing customers who buy more than prescribed quantities of processors from AMD,
Threatening retaliation against customers doing business with AMD,
Establishing quotas keeping retailers from selling the computers they want, and
Forcing PC makers to boycott AMD product launches.
Yow. This will get ugly.