AMD suit dismissed as 'media campaign'

Chip wars should not affect corporate buying decisions, says Gartner

Robert Jaques

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.

Advertisement

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.

  • Have your say
  • Send to a friend
  • Print
  • Digg
  • Reddit
  • Share

Tags:

Do you agree?

Further reading

Intel fires back broadside at AMD

"Excuses and speculation," claims Intel

AMD claims breakthrough in Intel battle

Vital motion granted by US District Court as AMD seeks to 'preserve evidence'

AMD takes Intel to court over 'illegal acts'

Chip makers' rivalry turns nasty as Intel is accused of 'worldwide coercion'

Related whitepapers

Related jobs

Most watched

Xperia X1

Video Review: Sony Ericsson Xperia X1

First Looks Editor Ian Williams gets hands on with the Sony Ericsson Xperia X1

iPhone

Video Review: iPhone 3GS

We put Apple's latest iPhone through its paces

IT white papers

Search white papers

Top categories

Poll

Poll: Summer smartphones

Poll: Summer smartphones

Which smartphone will you be taking to the beach this summer?

View poll results

Advertisement

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Spotlight

a padlock

Microsoft to plug security holes

Microsoft has given advance warning of a number of security...

Nokia handset

Top 10 articles, 10 July 09

No Nokia Android phone, ActiveX attacks and Google enters into...

Can Google beat Microsoft at its own game?

Google's announcement this week that it plans to step into...

iPhone

Video Review: iPhone 3GS

We put Apple's latest iPhone through its paces

Primary Navigation