Posted on 06/28/2005 8:07:12 AM PDT by Ernest_at_the_Beach
SAN FRANCISCO (MarketWatch) -- Advanced Micro Devices Inc. has sued its larger rival Intel Corp. for holding an unlawful monopoly in the market for chips that power personal computers.
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AMD, in a 48-page suit filed late Monday in Delaware federal court, accused Intel of using improper subsidies and threatened retaliation against computer makers, vendors, and retailers using or selling AMD products.
Intel's chips power more than 82% of the world's personal computers. The allegations come as AMD's market share in the microprocessor market has slid from 20.2% to 15.8% since 2001.
AMD, which launched a new chip for desktops and laptops in late 2003 and has had some initial success in the corporate client PC market, seeks to step up pressure on Intel in the market for microprocessors, the brains of the computer.
The Sunnyvale, Calif.-based company plans to spin off its financially-troubled flash memory chip unit sometime this year to devote its resources to computer chips for computers and servers.
By alleging monopolist behavior, AMD aims to prove that Intel is harming consumers, forcing them to pay inflated prices for PCs.
"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.
In midmorning trading, Intel
shares rose 32 cents to $26.18. AMD
(AMD:
rose 39 cents to $17.05
Japanese regulators had previously found that Intel abused its monopoly power, while the European Commission is also probing Intel on antitrust concerns. Intel did not contest the Japanese ruling.
An Intel spokesman told the Wall Street Journal he hadn't seen the suit and that it believes its sales practices are fair and consistent with antitrust law.
AMD's complaint lists examples of what it characterizes as bribes, threats or intimidation by Intel involving 12 computer makers, nine distributors and 17 retailers.
Customers cited include International Business Machines Corp.
, Hewlett-Packard Co.
, Dell Inc.
, Sony Corp.
(SNE:
, Toshiba Corp. and Gateway Inc.
.
In discussions about buying from AMD, "Dell executives have frankly conceded that they must financially account for Intel retribution in negotiating pricing from AMD," the suit alleges.
AMD has been trying to persuade Dell to sell its x86 microprocessor.
AMD said it's been completely shut out from Media Markt, Europe's largest computer retailer and a division of Metro AG (DE:725750: news, chart, profile) , and Office Depot
, which declined to stock AMD-powered notebooks.
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Matt Andrejczak is a reporter for MarketWatch in San Francisco. |
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Every NEW PC I build is powered by AMD, 386-40, 486DX4-100, 586-133, K6-133, K6-266, Duron 750, and now my current PC Duron 1.3, the wife's PC is also a Duron 1.3.
When I buy a used PC it doesn't matter to me.
Bump for a later read.
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