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AMD Files Antitrust Lawsuit Against Intel
The Wall Street Journal ^ | June 28, 2005

Posted on 06/28/2005 12:07:01 AM PDT by HAL9000

AMD FILED AN ANTITRUST SUIT against Intel, accusing its rival of using illegal inducements and coercion to dissuade firms from buying AMD's computer chips. 3:00 a.m.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; News/Current Events; Technical
KEYWORDS: amd; antitrust; intel
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1 posted on 06/28/2005 12:07:03 AM PDT by HAL9000
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To: HAL9000

It must be that the wall street journal does not cater to firefox. The link is worthless when using it.


2 posted on 06/28/2005 12:12:43 AM PDT by Revel
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To: Revel

Works for me and I use Firefox. It's the first headline under "What's News."


3 posted on 06/28/2005 12:15:20 AM PDT by monkapotamus
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To: HAL9000
AMD Press Release -

AMD Files Antitrust Complaint Against Intel in U.S. Federal District Court

Tuesday June 28, 3:06 am ET

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 28, 2005--AMD :

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.

"Everywhere in the world, customers deserve freedom of choice and the benefits of innovation -- and these are being stolen away in the microprocessor market," said Hector Ruiz, AMD chairman of the board, president and chief executive officer. "Whether through higher prices from monopoly profits, fewer choices in the marketplace or barriers to innovation -- people from Osaka to Frankfurt to Chicago pay the price in cash every day for Intel's monopoly abuses."

x86 microprocessors run the Microsoft Windows®, Solaris and Linux families of operating systems. Even Apple®, a pioneer of the PC and one of the industry's enduring innovators, announced that it would switch exclusively to x86 processors to run Mac OS® software beginning in 2006. Intel's share of this critical market currently counts for about 80 percent of worldwide sales by unit volume and 90 percent by revenue, giving it entrenched monopoly ownership and super-dominant market power.

This litigation follows a recent ruling from the Fair Trade Commission of Japan (JFTC), which found that Intel abused its monopoly power to exclude fair and open competition, violating Section 3 of Japan's Antimonopoly Act. These findings reveal that Intel deliberately engaged in illegal business practices to stop AMD's increasing market share by imposing limitations on Japanese PC manufacturers. Intel did not contest these charges.

The European Commission has stated that it is pursuing an investigation against Intel for similar possible antitrust violations and is cooperating with the Japanese authorities.

"You don't have to take our word for it when it comes to Intel's abuses; the Japanese government condemned Intel for its exclusionary and illegal misconduct," said Thomas M. McCoy, AMD executive vice president, legal affairs and chief administrative officer. "We encourage regulators around the world to take a close look at the market failure and consumer harm Intel's business practices are causing in their nations. Intel maintains illegal monopoly profits at the expense of consumers and computer manufacturers, whose margins are razor thin. Now is the time for consumers and the industry worldwide to break free from the abusive Intel monopoly."

The 48-page complaint, drafted after an intensive investigation by AMD's lead outside counsel, Charles P. Diamond of O'Melveny & Myers LLP, details numerous examples of what Diamond describes as "a pervasive, global scheme to coerce Intel customers from freely dealing with AMD to the detriment of customers and consumers worldwide." According to the complaint, Intel has unlawfully maintained its monopoly by, among other things:

    --  Forcing major customers such as Dell, Sony, Toshiba, Gateway,
        and Hitachi into Intel-exclusive deals in return for outright
        cash payments, discriminatory pricing or marketing subsidies
        conditioned on the exclusion of AMD;

        --  According to industry reports, and as confirmed by the
            JFTC in Japan, Intel has paid Dell and Toshiba huge sums
            not to do business with AMD.

        --  Intel paid Sony millions for exclusivity. AMD's share of
            Sony's business went from 23 percent in '02 to 8% in '03,
            to 0%, where it remains today.

    --  Forcing other major customers such as NEC, Acer, and Fujitsu
        into partial exclusivity agreements by conditioning rebates,
        allowances and market development funds (MDF) on customers'
        agreement to severely limit or forego entirely purchases from
        AMD;

        --  Intel paid NEC several million dollars for caps on NEC's
            purchases from AMD. Those caps assured Intel at least 90%
            of NEC's business in Japan and imposed a worldwide cap on
            the amount of AMD business NEC could do.

    --  Establishing a system of discriminatory and retroactive
        incentives triggered by purchases at such high levels as to
        have the intended effect of denying customers the freedom to
        purchase any significant volume of processors from AMD;

        --  When AMD succeeded in getting on the HP retail roadmap for
            mobile computers, and its products sold well, Intel
            responded by withholding HP's fourth quarter 2004 rebate
            check and refusing to waive HP's failure to achieve its
            targeted rebate goal; it allowed HP to make up the
            shortfall in succeeding quarters by promising Intel at
            least 90% of HP's mainstream retail business.

        --  Threatening retaliation against customers for introducing
            AMD computer platforms, particularly in strategic market
            segments such as commercial desktop;

        --  Then-Compaq CEO Michael Capellas said in 2000 that because
            of the volume of business given to AMD, Intel withheld
            delivery of critical server chips. Saying "he had a gun to
            his head," he told AMD he had to stop buying.

        --  According to Gateway executives, their company has paid a
            high price for even its limited AMD dealings. They claim
            that Intel has "beaten them into 'guacamole'" in
            retaliation.

    --  Establishing and enforcing quotas among key retailers such as
        Best Buy and Circuit City, effectively requiring them to stock
        overwhelmingly or exclusively, Intel computers, artificially
        limiting consumer choice;

        --  AMD has been entirely shut out from Media Markt, Europe's
            largest computer retailer, which accounts for 35 percent
            of Germany's retail sales.

        --  Office Depot declined to stock AMD-powered notebooks
            regardless of the amount of financial support AMD offered,
            citing the risk of retaliation.

    --  Forcing PC makers and tech partners to boycott AMD product
        launches or promotions;

        --  Then-Intel CEO Craig Barrett threatened Acer's Chairman
            with "severe consequences" for supporting the AMD Athlon
            64(TM) launch. This coincided with an unexplained delay by
            Intel in providing $15-20M in market development funds
            owed to Acer. Acer withdrew from the launch in September
            2003.

    --  Abusing its market power by forcing on the industry technical
        standards and products that have as their main purpose the
        handicapping of AMD in the marketplace.

        --  Intel denied AMD access to the highest level of membership
            for the Advanced DRAM technology consortium to limit AMD's
            participation in critical industry standard decisions that
            would affect its business.

        --  Intel designed its compilers, which translate software
            programs into machine-readable language, to degrade a
            program's performance if operated on a computer powered by
            an AMD microprocessor.

To view the full text of the complaint, please visit http://www.amd.com/breakfree.

Leading publications such as The Wall Street Journal, The Washington Post, The Economist, San Jose Mercury News and CNET have recognized AMD as a leader in microprocessor innovation. AMD has achieved technological leadership in critical aspects of the x86 market, particularly with its AMD Opteron(TM) microprocessor, the first microprocessor to take x86 computing from 32 to 64 bits, and with its dual-core processors. The company has also stated its commitment to help deliver basic computing and Internet connectivity to 50 percent of the world's population by the year 2015.

Press and Analyst Conference Call

Hector Ruiz, AMD chairman, president and CEO; Thomas M. McCoy, AMD executive vice president, legal affairs and chief administrative officer; and Charles P. Diamond, partner at O'Melveny & Myers, LLP and AMD's lead outside counsel will discuss the details of the antitrust complaint against Intel at 9:15 AM PDT today on an audio conference call. Following their remarks, there will be a question and answer session.

Dial-in number: 651-291-0618

Code: 786995

Replay number:

800-475-6701 in North America

320-365-3844 outside the U.S.

Code: 786995

The audio conference will be available live and for 10 days after the conference call at www.amd.com/breakfreewebcast.

AMD's Position on Fair and Open Competition

AMD stands for fair and open competition and the value and variety competition delivers to the marketplace. Innovative AMD technology allows users to break free to reach new levels of performance, productivity and creativity. Businesses and consumers should have the freedom to choose from a range of competitive products that come from continuous innovation. When market forces work, consumers have choice and everyone wins. For more information, please visit http://www.amd.com/breakfree.

About AMD

AMD (NYSE:AMD - News) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, communications and consumer electronics industries. AMD is dedicated to delivering standards-based, customer-focused solutions for technology users, ranging from enterprises to government agencies and individual consumers. For more information, visit www.amd.com.

AMD, the AMD Arrow logo and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.


Contact:
     AMD Public Relations
     Dave Kroll, 408-749-3310 (U.S.)
     dave.kroll@amd.com
      or
     AMD Investor Relations
     Mike Haase, 408-749-3124 (U.S.)
     mike.haase@amd.com
     Ruth Cotter, 408-749-3887 (U.S.)
     ruth.cotter@amd.com
      or
     U.S. After Business Hours:
     800-938-8135
     512-527-7031
      or
     AMD Government Relations
     Jens Drews, +49 351 277 1015 (Europe)
     jens.drews@amd.com
      or
     AMD Public Relations
     Mari Hayashi, +81 3 3346 7560 (Japan)
     mari.hayashi@amd.com


4 posted on 06/28/2005 12:15:34 AM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: All

Of course, once you get there, WSJ requires a subscription but that has nothing to do with using Firefox.


5 posted on 06/28/2005 12:16:56 AM PDT by monkapotamus
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To: Revel

I got a elephant........


6 posted on 06/28/2005 12:17:41 AM PDT by fivekid ( STOP THE WORLD!!!!! I wanna get off.........)
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To: monkapotamus

I get imediately redirected to:

http://public.wsj.com/marketing/openhouse/welcome.html?oreq=/public/us

And the page is all white except for a link in the top right that says "Skip Intro". Clicking in that just takes me back to the same page. No pictures or headlines. Weird. Have not had problem loading any other sites tonight.


7 posted on 06/28/2005 12:18:51 AM PDT by Revel
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To: Revel

try this - http://online.wsj.com/public/us


8 posted on 06/28/2005 12:21:12 AM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: HAL9000
BusinessWeek - AMD Hauls Intel Back to Court
9 posted on 06/28/2005 12:22:54 AM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: HAL9000

That link does the same thing. Maybe they don't like the fact that I would not let them set a cookie.

However the link to business week works great. Thanks!


10 posted on 06/28/2005 12:26:07 AM PDT by Revel
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To: HAL9000
Even Apple®, a pioneer of the PC and one of the industry's enduring innovators, announced that it would switch exclusively to x86 processors to run Mac OS® software beginning in 2006.

It's too bad that AMD didn't design a better architecture than Intel. They both use the same stupid, brain-damaged little-endian storage format. If AMD had added big-endian access to the instruction set, Apple would have gone with AMD instead.

11 posted on 06/28/2005 12:27:30 AM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: HAL9000
BTW...I just discovered that the link to WSJ was opening a Java consel in my system tray. I have only seen this once before.
I now consider WSJ a security risk.
12 posted on 06/28/2005 12:36:30 AM PDT by Revel
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To: HAL9000

*** It's too bad that AMD didn't design a better architecture than Intel***

AMD's architecture is clearly superior to that of Intels. On chip memory controllers, higher IPC, superior dual core architecture, superior thermal characteristics, etc, make AMD64 and Opterons the choice of performance enthusiasts worldwide. AMD spanks the best that Intel can produce. Thanks for posting the article, it's very interesting.


13 posted on 06/28/2005 12:38:51 AM PDT by cabojoe
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To: HAL9000
Why would Apple care about the endian-ness of the chip? OS X will work with either. The OS was running on Intel hardware before Apple even bought it. Besides, Apple wanted to get away from the supply problems they suffered under IBM. AMD's capacity is severely constrained Intel, on the other hand, has sufficient fabs to supply anything that is needed.

And then there is the cash support Intel will be giving Apple, as is detailed in this lawsuit...

14 posted on 06/28/2005 12:42:24 AM PDT by ordinaryguy
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To: Revel

Why would that cause you to consider the Journal to be a security risk?


15 posted on 06/28/2005 12:43:26 AM PDT by ordinaryguy
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To: ordinaryguy
Why would Apple care about the endian-ness of the chip? OS X will work with either.

#1 - To maintain compatibility with the petabytes of information already stored in big-endian format on existing Macs. All of that data will now have to be rearranged backwards to match Intel's antiquated numeric format.

#2 - Because big-endian numeric format is just plain better than little-endian format.

16 posted on 06/28/2005 12:49:42 AM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: HAL9000
OpenStep, the predecessor to OS X, ran on both 'black' (Motorola) and 'white' (Intel) hardware. The OS is designed to work with big or little endian machines. It really isn't an issue, as the software written for it is endian-neutral. The OS will figure out what needs to happen with the data, and translate it, transparently, if necessary.

This would have been the least of Apple's consideration in such a major decision as switching processors.

17 posted on 06/28/2005 12:57:30 AM PDT by ordinaryguy
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To: HAL9000
That is highly debateable. Here are a couple of counter points:

* Little endian allows storage of arbitrary-sized data items without needing to know the size in advance, provided it is byte-aligned. Big endian, by contrast, requires complicated casting and shifting to get, say, a 32-bit value into 16-bits. It's so bad that in a printf() one has to specify %04hx instead of %04x. On little endian, it doesn't matter - you're just taking the first 16 bits of a 32-bit value, so who cares?

* In the little endian, higher-order bytes are stored at higher adresses.

18 posted on 06/28/2005 1:02:28 AM PDT by Lexinom
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To: Lexinom
Little endian allows storage of arbitrary-sized data items without needing to know the size in advance, provided it is byte-aligned. Big endian, by contrast, requires complicated casting and shifting to get, say, a 32-bit value into 16-bits.

I disagree. I work with arbitrary-sized data items all the time on big-endian format. It's more efficient to use big-endian because the bits are arranged in a consistent linear order. The x86 little-endian format can require a lot more swapping and shifting for bit fields of arbitrary length.

Little-endian storage format is a bizarre relic from Intel's 4-bit calculator chips of the 1970s. The only advantage it offers is it can start processing some low-order data while it is still loading a high-order word. Intel's architects have admitted that sticking with little-endian was a regrettable error.

19 posted on 06/28/2005 1:23:35 AM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: HAL9000

What the hell does it matter? The current AMD64/opterons are so incredibly fast and efficient it doesn't matter...I work in 3d animation and I only care about floating point, memory bandwidth etc...these chips are monsters.


20 posted on 06/28/2005 2:00:02 AM PDT by miliantnutcase
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