AMD files antitrust suit against Intel


— 9:18 AM on June 28, 2005

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.
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