So, AMD (American Micro Devices) has decided ot wage a war against it's only competitor, Intel, for unfair business practices, a'la DOJ vs Microsoft back in 97. The processor manufacturer is calling Intel's business influence unfair.
What started as a lot of back and forth, AMD has decided to push it's suit onward to the American leagal system and taking its competitor to court for praciticing 'monopolistic' practises when it comes to selling processors. This harkens back to the anit-trust lawsuit that the Department of Justice and 20 States in the US files against software giant Microsoft.
In detail, AMD accuses Intel of:
1. Putting conditions on rebates, allowances and market development funding on customers' agreement to severely limit, or forego entirely, purchases from AMD;
2. Establishing a system of discriminatory, retroactive, first-dollar rebates triggered by purchases at such high levels as to have the practical and intended effect of denying customers the freedom to purchase any significant volume of processors from AMD;
3. Threatening retaliation against customers introducing AMD computer platforms, particularly in strategic market segments;
4. Establishing and enforcing quotas among key retailers, effectively requiring them to stock overwhelmingly, if not exclusively, Intel-powered computers, thereby artificially limiting consumer choice;
5. Forcing PC makers and technology partners to boycott AMD product launches and promotions;
6. Abusing its market power by forcing on the industry technical standards and products which have as their central purpose the handicapping of AMD in the marketplace.
AMD claims these potential antitrust violations have occurred over all levels of the IT industry on a global basis. But these were things that we heard back in the Microsoft antitrust case to begin with. Where does the IT community sit?
First off, while AMD does indeed make a better processor, the company has shown no growth and in fact has been losing market share. By siting the reasons above, it could be a decent arguement that AMD is unfairly being hasselled out of the market. While Intel does have a television presence, AMD has forgone this. Intel is a wider reconized name than AMD, regardless. It is possible in my mind that part of this really has to do with the branding of the products. IT is not unreasonable that companies carry a processor make that consumers reconize.
I personally see this as a weak attempt to try and bring some attention to a company that is starting to lose out. I beleive that a part of a successful business formula is exposure. Intel has always hooked great deals with large computer companies, be it IBM or HP. Intel also puts itself out there at events and sponsors things. AMD sits quietly in the corner and makes processors. While it is a good company for processors, I really can't believe that Intel has forced it's presence in the IT world to cripple the competitor. After all, I know hundreds of people on my IM list alone that will pick AMD just because it ISN'T Intel.
AMD is willing to take this all the way for a verdict in their favor, but will it continue if revenue starts to spurt up? I think not. Then again, maybe they have a legitimate case. Bullying in the business world is not unheard of, and if Intel is guilty of it, so what? Business is a rough world, and only the strong survive. Good luck AMD.