EU raids Intel offices.....

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Terry Stetler
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Quote:
EU investigators raid Intel offices

David Gow in Brussels
Wednesday July 13, 2005
The Guardian

Investigators from the European commission and national competition authorities in several European countries, including Britain, yesterday mounted a series of dawn raids at premises of Intel, the world's leading chip maker, as part of an inquiry into alleged anti-trust activities.

The raids are linked to lawsuits and complaints filed by Intel's smaller rival, AMD, about the US group's allegedly illegal practices in maintaining its monopoly in the microprocessor market.

............

http://www.guardian.co.uk/business/story/0,3604,1527127,00.html

Terry Stetler

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bcrabtree
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AMD issued a press release supporting these raids, surprisingly!

Terry,

Well spotted. I suspect that the Guardian, like most news organisations, was alerted to the happenings by a press release issued by AMD on the day of the raids, and which I've posted below.

Bob C

AMD Supports European Commission’s Dawn Intel Raids For Possible Antitrust Violations

SUNNYVALE, CA -- July 12, 2005 --AMD (NYSE: AMD) released the following statement today regarding the European Commission’s dawn Intel raids across Europe:

“Today’s dawn raids should come as good news to consumers across Europe,” said Thomas M. McCoy, AMD executive vice president, legal affairs and chief administrative officer.

“Every computer user has a strong interest in ensuring that the full truth about Intel’s anti-competitive abuses is revealed and corrected. The European Commission dawn raids show that Intel cannot and should not escape the scrutiny of antitrust officials around the world – nor can Intel escape the consequences of its anti-competitive actions, which raise prices, threaten innovation and harm consumers.”

Today’s action takes place against a backdrop of increasing scrutiny of Intel’s business practices.

AMD filed a 48-page complaint in U.S. federal district court against Intel on June 27th, explaining 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. AMD’s complaint is available for download at: http://www.amd.com/breakfree

The U.S. litigation follows a recent ruling from the Fair Trade Commission of Japan (JFTC) on March 8, 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.

AMD Japan filed two claims on June 30 two claims against Intel Corporation’s Japanese subsidiary, Intel K.K., in the Tokyo High Court and the Tokyo District Court for damages arising from violations of Japan’s Antimonopoly Act.

The suit in the Tokyo High Court seeks US$50 million (approx. 5.5 billion yen) in damages, following on the Japan Fair Trade Commission (JFTC)’s findings.

An additional suit filed at the Tokyo District Court level seeks to recover millions of dollars in damages for various anticompetitive acts in addition to what is covered in the scope of the JFTC Recommendation.

“We have illustrated specifics of Intel’s anti-competitive abuses in our 48-page antitrust complaint.” Mr. McCoy added, “We are sure that today’s dawn raids will yield even more insight into Intel’s antitrust violations.”

AMD continues to work with antitrust authorities around the world to look at the market failure and consumer harm Intel’s business practices are causing in their nations.

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) 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.

harlequin
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Quote:
It claimed customers such as Dell, Sony, Toshiba, Gateway and Hitachi had been forced into Intel-exclusive deals in return for cash payments, discriminatory pricing or marketing subsidies.

Sony AMD models : http://tinyurl.com/7mvze
Gateway AMD Models : http://tinyurl.com/dvuwz

Hmmm .... AMD rewriting the definition of 'exclusive'

Gary MacKenzie

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DVdoctor
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As I have mentioned before IF the various oem's had joined AMD then it would be a vastly different legal situation. Be interesting to see how it all unfolds.
John

bcrabtree
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harlequin wrote:
Sony AMD models : http://tinyurl.com/7mvze
Gateway AMD Models : http://tinyurl.com/dvuwz

Hmmm .... AMD rewriting the definition of 'exclusive'

Gary,

I think you forget that AMD is talking historically, not just only of the present, and also that specific allegations apply to specific countries and markets.

That being so, I think it's not unreasonable for the term exclusive to be used. Mind you, since you don't say where the quote comes from...

Whatever the case, do check out the PDF that is referenced in the original AMD release in this forum. It's pretty easy reading despite its near-50-page length, and does merit some study for those interested in the issues.

Bob C

harlequin
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bcrabtree wrote:
Gary,

I think you forget that AMD is talking historically, not just only of the present, and also that specific allegations apply to specific countries and markets.

That being so, I think it's not unreasonable for the term exclusive to be used. Mind you, since you don't say where the quote comes from...

Whatever the case, do check out the PDF that is referenced in the original AMD release in this forum. It's pretty easy reading despite its near-50-page length, and does merit some study for those interested in the issues.

Bob C

quote is from bottom paragraph here : http://www.guardian.co.uk/business/story/0,3604,1527127,00.html

My personal opinion :

If they are talking historically , I think they are on even thinner ice.
I know that Gateway have made AMD units for a long time , I just always bought INTEL, there were AMD alternatives for all three Gateway2000 machines I have.

As have Sony ........ windows 98 second edition was shipped with the oldest laptops I remember.

I find it weird that in the big bad world where competition is the name of the game , a company like AMD has enough spare money to pay lawyers to do this.
The only ones that will gain monetarily will be the Lawyers , everyone else will be hurt , and consumers may once more end up having to pay more , because the court case will cost , and someone somewhere has to find the money.

Me I'll continue to buy Intel , like microsoft products , until someone can prove to me that others are as reliable/stable/have same technical backup.

I think the AMD64 is a nice idea , I just don't have a need for it when I already have twin xeons , and I don't see too many edit systems based on amd64 motherboards.

Gary MacKenzie

sepulce@hotmail.com ( an account only used for forum messages )

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DVdoctor
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Part of the stragegy is that the Lawyers in the huge companies like Intel and Microsoft usually work out settlements which can be very large.

One of my old companies kept claiming that Microsoft had unfairly competed etc, and finally years later MS paid out 536 million dollars. SO I think AMD is counting on the publicity and also that they will get a settlement. IF it were a US goverment anti trust action or a legal action with AMD joined by the companies that AMD claims were strong armed, it would be very different.

Personally I have used AMD for years think they make great products but have some of the weakest not agressive marketing around. I also think that when they decided to not make the processor support chips for the Motherboard, they opened themselves to all sorts of problems that have made many oems nervous and also been the cause of many of the compatibility issues over the years.

John