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AMD Files Antitrust Suit Against Intel

By Nate Mook, BetaNews

June 28, 2005, 12:59 PM

Chipmaker Advanced Micro Devices has sued Intel in a broad-ranging 48-page complaint accusing its rival of using illegal scare tactics and coercion to keep computer manufacturers from using AMD processors. AMD cited 38 companies in its lawsuit that it claims were bullied by market leader Intel.

AMD's case follows an antitrust ruling in Japan where Intel was found to have coerced one OEM into agreeing to purchase all of its CPUs from Intel, while another was mandated with an Intel-imposed quota of 10 percent non-Intel purchases.

A key issue in the AMD case could be the rebates Intel offers computer makers who agree to use its chips exclusively. Such marketing subsidies have become commonplace in the technology industry, but AMD says the practice is illegal for monopolists like Intel.

In order to make its case, AMD plans to seek subpoenas to obtain private e-mails between its customers and Intel. AMD will also ask customers to testify on its behalf.

AMD has also setup a special Web site devoted to what it calls "Fair and Open Competition" where company CEO Hector Ruiz details the reasons behind AMD's lawsuit.

"Intel's behavior is much more than meets the eye," Ruiz wrote. "You may not have been aware, but Intel's illegal actions hurt consumers - everyday. Computer buyers pay higher prices inflated by Intel's monopoly profits. Less innovation is produced because less competition exists. Purchasers lose their fundamental right to choose the best technology available."

The case could go to trial as soon as the end of 2006.

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By athome

edited Jun 29, 2005 - 12:12 PM

AMD should take them to court as well as Win. Ultimately, this will affect competition and pricing across the board. AMD is beginning to get pretty pricey. What used to be an alternative has now become the tit-for-tat.

In today's market, I see about the same choices for AMD and Intel. I think "their claim" was common place early on, but market demands have brought about the needed change naturally.

AMD has finally(within the past year) been able to stick its head above ground and be considered equal to Intel(sometimes better and a leader), inspite of Intel's illegal activities. That says a lot about Inteland AMD(I think). Raising their prices in accordance with them is a wrong move I feel. They are forgetting what got them to this position. AMD was the best bang for the buck. If their prices continue to rise, we will begin looking for another alternative. (Could the old Cyrix chip come back) Not really a contender per say, but given what the market was like then and Intel's influence, what it could be like today with a third chip manufacturer.

Intel lost their vision on what is important. Much to say the same with MS. Rethinking and redirecting their strategy, as with MS, will be the only thing that will save them. Intel needs to pay up and then get busy.

Score: 0

By jshrk

posted Jun 29, 2005 - 10:49 AM

Just finished reading the PDF, what can i say but Intel you are a bunch of Wan****
Glad i own only AMD products, finally them much more superior and will support AMD in this - go for it!

Score: 0

By roj

edited Jun 29, 2005 - 7:39 AM

It's about time. One has only to look at
Dell, otherwise kown as "Intel's wh***".

As to the overclockers:

Grow Up.

That's Greasy Kidz Stuff. Processors are cheap enough today that this novel concept applies:

You Want Faster? BUY Faster.

Score: 0

By AshG

posted Jun 29, 2005 - 11:13 AM

Wow, interesting tone; are you a reseller, perhaps?

The allure of overclocking, of getting more speed/performance for less money, is just this generation's version of engine tweaking. Actually, for many of us, the computer is akin to our parents' or grandparents' "car in the garage" that is worked on, tweaked, modified, etc as both a hobby and as something functional. While we're dealing with microprocessors and latencies instead of engines and belt timings, the goal is the same: a customized, more-for-the-money hobby that creates an appreciable product for the owner if not others as well.

I guess this is part of what Apple is having to overcome. I pondered the switch to OSX, but I'd have to give up my black motherboard with UV reactive slots, sockets, and cables, my glowing fans, my modified case, etc. It wouldn't be worth losing the work put into it; that's the case for many in the mod/hobby community. But I digress, and I'm off topic. Excuse me.

What does overclocking have to do with this case? Everything. When any one player is the sole game in town, they start locking that position in and taking away use control of things like clock multiplier and memory frequency. Following this road, you end up with pretty bland systems that take away the hobby/tweaking aspect and make them about as interesting as working on Mac hardware.

While the facts we've seen so far are pretty damning of Intel as far as legality, I also hope for a pro-AMD ruling simply to maintain duality in the market. Dominance by a single company is good for no one, especially the enthusiasts who help keep the industry fun.

Score: 0

By bourgeoisdude

posted Jun 29, 2005 - 11:36 AM

Agreed, but for business purposes (where Intel dominates) overclocking is not even a consideration, and businesses are the oneswho buy the bulk order PCs so that's where the money is, and Intel knows it. That's how Intel gets away with it. AMD is not gaining on the business side because Intel is screwing consumers by their stupid "buy AMD and we'll never sell you discounted cpu's again" threats. Gamers are keeping AMD alive, but business has the market share.

Score: 0

By bourgeoisdude

posted Jun 29, 2005 - 11:09 AM

I agree. BTW, I know personally by speaking with several higher-ups in my computer company (can't say who, but they just MIGHT have been mentioned by roj above :) that we have tried several times to get AMD for certain gaming line of systems, as well as our servers, but we speak with Intel and--suddenly we change our mind. I am speculating here but I can tell from our attitude that Intel is "bribing" us into submission. I've heard rumors that we have secretly done some things with servers for people begging us in the past....whoa I better stop there.

Score: 0

By balewolf

posted Jun 29, 2005 - 1:24 AM

Iv used amd and intel and like them both but intel has been more stable and overclockable for me. And the intel chip i put thru hell still works while the amd chip died and took out the psu and motherboard with it. All depends on your Prefernce i guess no clear cut choice whos better its who works better for you. If intel did do everything in pdf i hope amd wins make it fair and force intel to lower their prices.

Score: 0

By Kramy

edited Jun 29, 2005 - 4:04 AM

Makes sense. I've had s*** luck with Intel processors though(opposite to you?). One killed my harddrive, another took out a mobo, and another fried the memory and melted all the IDE cables somehow. I've never been able to overclock them well either, as opposed to my experiences with AMD processors.

Score: 0

By fewt

posted Jun 29, 2005 - 10:01 PM

You did not have a CPU take out your hard drive, or your memory.

Intel CPUs have also had technology in them to prevent burning for many many years.

If you have had that many problems with your PC then I suggest you stop trying to build them yourself because that's the REAL problem. ;-)

Score: 0

By eunichman

posted Jun 29, 2005 - 2:29 AM

Overclocking is not advised or encouraged by any chip manufacturer and voids warranties on cpus. if you are doing things to your cpus to make them operate in a manner that is not supported you cant whine when it doesnt work properly. I know everyone does it but that doesnt make the cpu manufactirer responsible when you or anyone else overclocks.

Score: 0

By Marticus

posted Jun 29, 2005 - 2:04 AM

Have you worked with the newer 64 bit core that AMD has released recently? They run much cooler than most of the T-bird series and 32 bit XP series.

I remember frying my old 1.0ghz AMD CPU because I overclocked it too much. Yet my new 64bit 3200+ runs @ 35C idle and 48C with a full load. I also use the stock heat sink and fan that came with the CPU.

If you haven't tried the newer AMD 64bit XP, you might be surprised.

Score: 0

By malcolmsuperstar

edited Jun 28, 2005 - 11:43 PM

you find that most people who are hard core Intel, have been with Intel from day one before AMD was born.

So there is no way you can change these people on what is a better product. Intel as made it strong with video card manufacturers and mainboard old term (motherboard) manufacturers to stay within intel retrictive standards that no other companies in the processing business could implement with their processors. That is one of the main reason why you don't see any processor companies poping up. Intel spends huge $$$$$ to covince congress about lies and a strong monopoly that could in doubt be hardly broken.

Then comes AMD with huge $$$$ investment from the stock exchange(1980's)willing to invest to compete with Intel.

For the last 6 years, One of the most new Manufacturing Powerhouse from China will be coming out next year with a whole new line of processors at a much cheaper cost, with their top CPU running at 5Ghz, with bus speed 2000 with L1, L2, L3, L4 running seperately 3GB.

personally, I enjoy AMD better. It has a better flexibility than Intel and better to manipulate its core frequencies.

For Intel, well, its for dummies. with all its safeguards in place, it would be harder for software maker like Microsoft to control. That is why Microsoft as been working closely with AMD. That is WHY that AMD was first to implement 64 bit since it as a better capability to work in partnership between cpu and windows.

Same goes between ATI & Nvidia. ATI has always made a better video card than Nvidia. With American money (Nvidia) versus Canadian Money (ATI). Nvidia spends huge American money on marketing in advertising. ATI marketing growth as been more frequent with word of mouth from owners, IT retailers and computer stores clerk and the true editorials found on websites like this, that have personally proven that ATI is a better product.

I used Nvidia products for the last 9 years, I have in the last two years comparing both ATI and Nvidia. ATI wins with both hands up as a winner in the boxing floor.

before I end this, the thing that will win AMD is the WTO and Free Trade that as more economical power than the American Government that have been smeared with Intels Dirty Money.

AMD, your a top knotch company, give them hell with full firepower.

Score: 0

By Kramy

posted Jun 29, 2005 - 4:00 AM

I can think of 2 things that are questionable for benchmarking and comparisions by ATI with their newer cards, and that require about a 15% bonus to GeForce card scores to equal out.

Lets not get into ATI vs nVidia though, and just stick with wishing AMD well. :)

Score: 0

By BklynKid

posted Jun 28, 2005 - 9:16 PM

Always prefered them AMD over Intel, one because of price, and 2nd because I like the underdog in this case. AMD, to me (read: in my opinion!), seems like a more honest and trust-worthy company. They have never overcharged me for a processor, and I've owned them all since the K6. The price/value ratio is great and is something I'd like to see from Intel.

Good luck AMD!

Score: 0

By test123456

edited Jun 28, 2005 - 6:01 PM

The 48 pages pdf if well worth reading... Good luck AMD!!!

Score: 0

By bourgeoisdude

edited Jun 28, 2005 - 2:37 PM

WOW!!! If Intel is guilty of half these accusations they truly need a major "shake"-up call:
http://www.amd.com/us-en...ntel_Full_Complaint.pdf

Read points 72 through 84, if Intel has truly been doing that they--well you look for yourself at the pdf.

One thing for sure, with this bold, open, and very much daring move AMD has opened a can of worms that will make them or most definately break them. No turnin' back now. Wish you well AMD.

Score: 0

By Marticus

posted Jun 28, 2005 - 2:19 PM

*Update*

Well its really another link, but you can decide for yourself what is going on here
http://news.yahoo.com/ne...m/advancedmicro_suit_dc

Hmmmm...

Score: 0

By arossetti

posted Jun 28, 2005 - 2:14 PM

This could be very interesting. Their case has a lot more merit than the case against MSFT. I wish them well. Two strong companies pushing one another and innovating (instead of one stagnating) is good for all of us.

Score: 0

By Kramy

posted Jun 28, 2005 - 2:05 PM

I also have to wish AMD the best. Every intel processor I've ever had has died and taken another computer part with it.(Harddrive, memory, etc...) Every AMD processor I've ever had is still alive - even with lots of overclocking.

Really though, the only beef I have with Intel is that they play on people not realizing "ghz isn't everything"(and they've gotten so many fanboys to defend it...). If they'd just label their stuff similar to AMD, like "Intel P4 3.2ghz 2800+" then I'd be happy.

But hey, that's not gonna happen. :P

Score: 0

By GeneralLeoFF

posted Jun 28, 2005 - 2:09 PM

they do and have for some time now with the M and soon the D.

Score: 0

By Kramy

edited Jun 29, 2005 - 5:16 AM

I'm aware of that, but much of Intel's new stuff is heavily based off many of AMD's architecture improvements, so if they didn't name it the same they'd be screwy.

P4's are still widely available and sold, though.

Edit: I started reading that PDF, and now I think they're screwy anyway.

Score: 0

By Jeff Mincey

posted Jun 28, 2005 - 1:33 PM

In this effort I wish AMD the best. Monopolists do not serve the technology industry well. Open standards and diversity and consumer choice is what we should strive for.

Score: 0

By Marticus

posted Jun 28, 2005 - 2:13 PM

Agreed, AMD is a great company with lots of potential.

A large part of the problem is the Wintel Dualopoly. Our largest PC makers really just sell Intel based systems. Dell, HP/Compaq, Gateway. AMD has a long road ahead, this is just one small step for them.

I personaly really like AMD for its cheap processors, and honestly their Dual Core 64X2 CPUs are great for servers, and the single core chips are still providing amazing performance. Both with competative pricing.

Hopefully this is a step in the right direction.

Score: 0

By rcontra

posted Jun 29, 2005 - 9:39 AM

By the way, HP has both Intel and AMD.

Score: 0

By zim-hosein

posted Jun 28, 2005 - 9:28 PM

I'm on AMD's side w/ this lawsuit, but I am concerned about how the legal fees will affect their bottom line.

Score: 0

By AshG

posted Jun 28, 2005 - 10:05 PM

Given the amount of possible lost profit, I'd be surprised if AMD didn't file to have Intel pay both parties' legal fees. It would make sense, and possibly even be granted.

Score: 0

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