AMD Challenges Intel's Antitrust Practices

Strategic Insights -

AMD's executive vice president, Thomas M. McCoy, stated that Intel's response to AMD's antitrust complaint is not surprising, considering what Intel is trying to hide. The complaint, filed on June 27, 2005, asserts that Intel committed illegal antitrust violations to exclude competition. Intel's anticompetitive business practices are under intense scrutiny by governments around the world, including the Fair Trade Commission of Japan, which found Intel guilty of antitrust violations that harmed consumers based on direct evidence.

Key Takeaways:

  • AMD filed an antitrust lawsuit against Intel under Section 2 of the Sherman Antitrust Act, and Sections 4 and 16 of the Clayton Act, as well as the California Business and Professions Code on June 27, 2005.
  • The complaint addresses how Intel has unlawfully maintained its x86 microprocessor market monopoly by engaging in worldwide coercion of customers to refrain from dealing with AMD.
  • The Japanese Government recognized Intel's competitive harms on March 8, 2005, when its Fair Trade Commission (JFTC) recommended that Intel be sanctioned for its exclusionary misconduct directed at AMD.
  • AMD Japan filed two claims against Intel K.K., its Japanese subsidiary, in the Tokyo High Court and Tokyo District Court for antitrust violations.
  • The European Commission recently raided Intel offices across Europe, as well as a number of other IT firms manufacturing or selling computers, as part of its ongoing investigation into Intel for antitrust violations.
  • South Korean antitrust authorities are also investigating the marketing and rebate practices of Intel.
  • AMD stands for fair and open competition and the value and variety competition delivers to the marketplace, allowing users to break free to reach new levels of performance, productivity, and creativity.

Statistics:

  • AMD filed an antitrust lawsuit against Intel on June 27, 2005.
  • The Fair Trade Commission of Japan found Intel guilty of antitrust violations on March 8, 2005.
  • The European Commission raided Intel offices across Europe in its ongoing investigation into Intel for antitrust violations.
  • South Korean antitrust authorities have conducted preliminary investigations into five South Korean PC makers supplied by Intel and have asked Intel to provide related documents by the end of August.

Sources:

  • AMD press release dated September 1, 2005.
  • AMD complaint filed on June 27, 2005, available at http://www.amd.com/breakfree.
  • Article mentioning AMD's position on fair and open competition.