Yet another high tech "underdog" has decided to take on its Goliath. According to USA Today , Advanced Micro Devices filed an antiturst complaint against its longtime rival, Intel, claiming that Intel used its huge size to coerce customers into choosing Intel's chips over AMD's. This case may finally shed some light on the murky and sometimes less-than-ethical world of chip sales...
This is not new information -- AMD has long complained about the perks that Intel's offers customers to get them to sign up such as big discounts on large orders and the substantial "market development funds" for featuring Intel in ads (you know -- the "Intel Inside logo and earcon).
AMD says these are strong arm tactics giving Intel an unfair advantage. Intel says they are just smart business practices...
In the long run, some analysts think that the lawsuit will not harm Intel and, in fact, may actually give both companies a boost -- all this invaluable publicity for them, don't you know.
Of course, Intel is not taking this lying down. Their President and CEO, Paul Otellini, came back with his own shots, stating the company would not change its business practices and expects any court decision to be resolved in its favor.
"Intel has always respected the laws of the countries in which we operate," Otellini said in a statement. "We compete aggressively and fairly to deliver the best value to consumers. This will not change."
Meanwhile, AMD has not stopped its attacks. The company began running a full-page ad in newspapers today giving the reasons for its antitrust lawsuit and to issue a call to action. The ad, appearing in newspapers from The New York Times to Capitol Hill's Roll Call, expands AMD's legal fight into the realms of public relations and public policy.
Looks like it's going to get a lot nastier before this is all over. No trial date has been set yet.
Yours in BI Success,
Posted June 30, 2005 9:23 AM
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