AMD suit dismissed as 'media campaign'
/v3-uk/news/2010412/amd-suit-dismissed-media-campaign
14 Jul 2005, Robert Jaques , V3
AMD's high profile suit against Intel alleging anticompetitive practices has been dismissed as "part of a media campaign" attacking the world's largest chip manufacturer, and should not affect corporate buying decisions.
"The AMD filing, which is surprisingly readable for a legal document, seems to have been crafted not only as a legal complaint, but as part of a media campaign. AMD has also run full-page ads in major newspapers outlining its position," said Martin Reynolds, vice president and fellow at Gartner Research.
The case will draw intense media attention, according to the analyst, but is unlikely to have an adverse impact on either companies' operations.
Gartner advised firms to ignore the suit and not make any changes to system procurement plans. "AMD and Intel will not be distracted from their operations, " the analyst stated.
The AMD complaint alleges that Intel is a monopoly, and cites examples of practices that it believes to be illegal for such a monopoly.
AMD alleges that Intel violated US antitrust law by pressuring 38 system manufacturers, including Dell, HP and Sony, to use its microprocessors.
"Intel could argue in response that its market dominance is due to innovation and aggressive capital investment rather than to monopolistic behaviour and that if PC technology did not advance, the market would be dramatically smaller," said Reynolds.
"Some of the allegations involve clear threats outside contractual relationships; the complaint details what it describes as 'old-fashioned threats, intimidation and knee-capping'.
"If true, these seem serious enough to merit action irrespective of Intel's status as a possible monopoly."
Reynolds went on to predict that the lawsuit will probably take years to resolve, but conceded that the pace would be quickened if AMD managed to interest US federal or state authorities in taking up a parallel antitrust case.
"The battle will begin to heat up when AMD tries to engage in the discovery process, which Intel can be expected to vigorously oppose. No company wants lawyers rummaging through its email and other records," he said.
© Incisive Media Investments Limited 2010, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Do you agree?
Should read: "Analyst Dismisses..."
The headline suggests that the courts dismissed the suit -- incorrectly. That's why journalists are taught to avoid passivity in headlines.
The article's packaging of the Gartner fellow's initial quote also seems to me to be wildly misleading.
For one thing, it makes the analyst seem short-sighted. My limited knowledge of the IT space alone suggests the lawsuit is far more significant than simply publicity.
My opinions aside, it seems to contradict what he says later. The beginning of the story suggests the suit is hype; the middle-end suggests that there could be merit to AMD's charges, and it's too early to tell.
Posted by Christopher Saunders, 15 Jul 2005
Funny way to run a media campaign!
Taking a company to court, especially a US court, and making the allegations that AMD have seems a damned funny way of running a media campaign. The downside, where it to be shown to be frivilous, would be more than a slap on the wrist.
I agree with the previous post - the headline and order of the quotes was misleading.
"Gartner says ......" would have been a more accurate headline.
Posted by Jez, 16 Jul 2005