Intel Replies to AMD Antitrust Lawsuits 170
pr1000 writes "The New York Times is reporting today that Intel has replied sharply to AMD's lawsuit. This lawsuit sounds like it will be a bruiser." From the article: "The claims are factually incorrect and contradictory...The evidence will show that every failure and setback for which A.M.D. today seeks to blame Intel is actually a direct result of A.M.D.'s own actions or inactions."
A bruiser? (Score:5, Funny)
"You did it!"
"No YOU did it!"
"No YOU did it!"
repeat ad nauseam
Re:A bruiser? (Score:5, Insightful)
Perhaps, but it's a playground argument with big ramifications for both companies (for AMD in particular). They've been at it in the courts for years, but not without some consequences. As the article notes, a settlement in 1995 gave AMD the right to develop chips based on the Intel x86 design.
What I find interesting is Balto's claim that Intel is taking this suit very seriously and that it could take three or four years to litigate. That's got to be a big distraction in money and effort for both companies.
Re:What a great week this has been! (Score:2)
That was so bad it's funny!
Your PC is too cheap... (Score:4, Insightful)
While I rather like AMD, I really can't argue against lower prices. Um, yay intel?
Re:Your PC is too cheap... (Score:4, Insightful)
With fair competition, prices would remain just as low, and people would be able to choose between an AMD processor or an Intel processor in their crappy new Dell. Lower prices + choice > lower prices.
Re:Your PC is too cheap... (Score:5, Informative)
Here's an example: In the town where I grew up, there was a nice floral shop. Then in came a huge chain supermarket that offered lower prices on cut flowers. After a while, the local mom-and-pop florists died under price pressure. Once they were dead, the supermarket raised its prices on cut flowers.
So what you get is a temporary price reduction while the big company kills the little one. And perhaps whenever it needs to kill a competitor. But most of the time the prices stay high.
Re:Your PC is too cheap... (Score:2)
Re:Your PC is too cheap... (Score:2)
That's exactly what Intel is doing by giving Dell and friends deals if they don't install AMD chips. You get a cheaper price on Intel processors, and when AMD finally goes under because of the anticompetitive practices, Intel jacks the prices on its processors sky high.
Re:Your PC is too cheap... (Score:2)
CPUs are in no way a commodity since there is plenty of room to innovate and differentiate yourself from the competition (AMD-64 anyone)?
Also, you cannot take microeconomic theories and apply them to macroeconomics wholesale. While some theories hold, others do not. It is dangerous to mix apples and oranges.
If
Re:Your PC is too cheap... (Score:4, Informative)
Re:Your PC is too cheap... (Score:2)
the ones that purport to do so work for a little company in santa clara...
just another day in astroturf world.
Re:Your PC is too cheap... (Score:2)
Re:Your PC is too cheap... (Score:3, Informative)
You don't seem to understand how monopolistic pricing works. A typical example is to only offer a rebate if they don't use AMD chips. The post-rebate price is the "take it in the shorts" end user price. The pre-rebate price is the "drive stores carrying AMD out of business" price.
Let me make an example, let's assuming the marketing at Intel has figured out that 500$ is the optimal price point:
Fair play:
Intel chips cost 500$, r
Re:Your PC is too cheap... (Score:2)
(disclaimer: proud owner of two Athlon XPs and no Intels newer than a P2).
Reverting to the Microsoft defence... (Score:5, Insightful)
MS/Intel: "We did nothing at all to try and impact our competition or operate in anyway unfairly"
Netscape/AMD: "So what about this memo where you say you are going to do everything to 'kill' us"
MS/Intel: "You made us do it, its your own fault"
Its going to be brusing but the key is going to be disclosure.
Obligatory Family Guy Quote (Score:2, Funny)
Peter - Well, what about that graph that says "The first thing we want is for kids to start smoking" *points to said graph*
EDE - That? Oh that's just something my son made in art class
Peter - Oh yeah? Well what about that sign that says "The graph was NOT made in art class. We really DO want kids to start smoking" *points to said sign*
Re:Reverting to the Microsoft defence... (Score:2)
Not to put too fine a point on it, but things like that are said in every company about the competition.
See, it's like how the coach tells you to go an "kill" the other team just before you run out onto the field.
Re:Reverting to the Microsoft defence... (Score:2)
What would you expect? (Score:4, Insightful)
Would you really expect Intel to say "Oh, we're sorry that we're monopolists. Please punish us!"
Who knows. Maybe Intel is right, maybe not. Court will decide.
Re:What would you expect? (Score:4, Interesting)
Apparently AMD does have a case. Much as I like intel's low prices, that won't last if they become a monopoly. I wonder if apple got an offer of this sort from intel?
Re:What would you expect? (Score:2)
You like Intel's low prices? Pick any price point; the AMD processor will be faster than the Intel for the same price. Except for maybe the new dual-processor offerings, AMD's prices have always been significantly lower than Intel's.
Re:What would you expect? (Score:3, Insightful)
And that's the huge flaw in AMD's case. Intel isn't manipulating prices because it has a monopoly, but does so because it wants to maintain market share in the face of competitors like AMD, VIA, and formerly Transmeta. With Chinese x86 CPUs bound to appear within the next few years, intel has to keep doing stuff like this to compete. What intel is doing isn't a monopolist abusing its status, it's a market leader fighting to hold
Re:What would you expect? (Score:2)
I thought the Chinese were making their own "Dragon" chip or something...
I didn't realize it was just a clone of an x86 chip.
Re:What would you expect? (Score:2)
The same could be said of anybody who uses subterfuge to not only maintain their position, but undermine their competitor's chance of even competing for the same spot. You would be best to think the same of any linebacker who clips a QB at the knees 3 seconds after a pass, a mob boss who rats out his rival to the police, or even a Sergeant who frags his superior to aide in his timely promotion
If IBM wins (Score:2)
Re:What would you expect? (Score:2)
I saw some bench somewhere that showed that the Celeron D 351 *almost* tailed the Sempron 64 3400+ (yes, Sempron 64. It's a Sempron, but with 64-bit enabled...) in a FEW benchmarks.
Re:What would you expect? (Score:4, Informative)
Having a monopoly is not a crime. Using that monopoly unfairly to stamp out competition is the crime. Maybe you meant to write: Would you really expect Intel to say "Oh, we've employed anti-competitive business practices. Please punish us!"
Re:What would you expect? (Score:2)
In theory, maybe. Practically speaking it's always a crime because common business practices are illegal if you're a monopoly.
Re:What would you expect? (Score:3, Insightful)
What the hell are you talking about. A mom and pop shop that's the only one in town has a monopoly, but there's nothing illegal about them doing business.
Re:What would you expect? (Score:2)
If they are, they could save themselves a lot of money in lawyers fees and get a lighter punishment by doing just that.
Re:What would you expect? (Score:2)
oh wait...
japan's FTC kicked intel's ass for being scumbags and south korea is now looking to bring charges against them. i'm certainly glad at least 2 countries have enough courage and cojones to stand up to these bullies and criminals.
AMD already has a response, btw... (Score:5, Informative)
I still think this is more of a playground argument. Nothing we haven't seen before.
Re:AMD already has a response, btw... (Score:2)
On one hand we have things like the SCO vs. IBM ligitation, which seems meritless and might end with SCO destroyed by IBM's counterclaims.
On the other hand, Microsoft has settled a few similar lawsuits by paying large sums, which indicates they had reason to fear the outcome of the lawsuit.
My test (Score:5, Informative)
If this is the case, the company has committed a crime. If this isn't a crime, then what the fuck is?
Re:My test (Score:2)
Smacking an innocent stranger upside the head with a crowbar.
That's a crime.
Re:My test (Score:2)
Re:My test (Score:2)
Tortious interference (Score:4, Informative)
So what's an incentive? (Score:2)
That's an incentive to buy Intel. It's also a disincentive against buying AMD. It also sounds like good business sense to
Re:So what's an incentive? (Score:3, Informative)
That's an incentive to buy Intel. It's also a disincentive against buying AMD. It also sounds like good business sense to
Intel's full response (Score:4, Informative)
Intel's official press release and [intel.com]text of filing [nytimes.com](.pdf)
Took them nine weeks? (Score:4, Funny)
Re:Took them nine weeks? (Score:2)
Re:Took them nine weeks? (Score:2)
Blah blah blah (Score:5, Insightful)
Re:Blah blah blah (Score:2)
Re:Blah blah blah (Score:2)
Of course not. No one with an IQ over room temperature does. Neither do we say "BUS-TED!", or "PSYCHE!" Those are reserved for annoying children.
Re:Blah blah blah (Score:2)
Undoubtedly, but it's not like Intel has always been able to deliver what they promised. I myself have seen more cases where Intel CPUs were officially out but not available due to supply problems than AMD ones. But then, I'm not much into Intel nor AMD CPUs...
Re:Blah blah blah (Score:5, Insightful)
But, if AMD was not competitive due to internal problems, why would Intel need to bother strong-arming their clients?
Re:Blah blah blah (Score:3, Informative)
Historically, AMD's biggest problem has always been decent supporting hardware (ie: motherboards - in particular, VIA chipsets), especially at the higher end.
Ironically, there are now a lot of kick-arse high end Opteron motherboards available, but much of the market has moved towards many low-powered machines rather than a small number of high powered machines - and there aren't any decent low-end Opteron motherboards (fo
Re:Blah blah blah (Score:2)
So, why is Dell still Intel-only? Someone explain to me how Dell, who is #1 in the world and has chosen Intel, makes money selling PC's in a market where the rest of the PC vendors barely scrape by? If there were more money to be had by going with AMD, then why doesn't Dell choose that route and even further bury
Re:Blah blah blah (Score:2)
Intel == Evil? (Score:5, Interesting)
Is AMD evil enough? Or is this just some P.R. campaign for them, where they hope to get some serious attention and maybe a bit of business based on their competitive offerings?
I wish AMD all the luck!
Re:Intel == Evil? (Score:2)
unfortunetly in this world, sometimes you don't have the choice to go with a saint over a devil.
amd is a part of the Insidious Computing group. intel, microsoft, apple, ibm are also part of that group. the thing is, in a free market amd would be able not to cripple their chips and still win with the end-users. but if they don't cripple the chips, they'll be left out in the cold.
it's collusion by means of coercion. it doesn't make sense to increase the die space and complexity of
My response (Score:3, Interesting)
Re:My response (Score:5, Interesting)
Even though my AMD dual core cost 2x that of my Intel dual-core 820 it was well worth it.
First off, the AMD dual core takes less power. Second, it's much more efficient in terms of IPC. I still clock a 3x improvement in bignum maht and both processors are 64-bit designs!!!
Sure that means little to the average consumer but it can only go on so far. People who need to do serious computing [e.g. servers, workstations, etc] can't use Intel processors because they're so f'ing wasteful.
Sure the PM may be good for laptops but so would a 1Ghz Crusoe...
Tom
Re:My response (Score:2)
(...)
Sure that means little to the average consumer but it can only go on so far.
Those two are almost a contradiction in terms. If it does what I want, it's not shit. Most people haven't felt the influence of CPU speed in ages, particularly because manufacturers have been selling high GHz, low memory machines which crash dive into swapping.
At best, consumers don't notice a thing going from Intel to AMD (except on the price tag, but they don't se
Re:My response (Score:2)
They had it with the Athlon when it was going head to head with the P3 *AND* P4 processors. sure the K7 had heat issues but so did/does the P4 design. So that's relatively moot.
On the one hand some of the AMD problems are their own. Making really hot K7 processors and not getting into the mobile design was THEIR OWN fault.
On the other hand Intel FUD and r
Re:My response (Score:2)
In the grand scheme of "technology" we're wasting a lot of power simply to fund limited choices.
A typical 500Mhz ARM9 or ARM11 processor runs without a fan, barely a heatsink [if any] and is quite capable of rendering a web pa
Re:My response (Score:2)
what would you do then?
Re:My response (Score:2)
AMD has their own circles (Score:2)
Re:Great idea. (Score:2)
Re:Great idea. (Score:4, Informative)
it's not. AMD Headquarters One AMD Place Sunnyvale, California 94088-3453 (408) 749-4000 They have fabs in Germany, but they're a US company.
Anti-Trust (Score:2, Insightful)
During those times when the cut-throat competition between Intel and AMD brought about great changes on processor speed and performance (remember how fast we went from 266Mhz to 1Ghz?) it seemed ther
Re:Anti-Trust (Score:2)
Sorry, I really dont think the tech will win. The mony will win, as usual, when Intel can convince people that they not only NEED Intel processors, (when was the last time you saw an AMD logo, let alone a commercial, on TV?) but that there is no competition to s
Paying for innovation (Score:2)
Re:Anti-Trust (Score:2)
If what AMD is saying is true, then they would have done *even better* if Intel hadn't done illegal things to protect their near-monopoly.
Re:Anti-Trust (Score:2)
Re:Anti-Trust (Score:5, Insightful)
You're looking at this from an I-Build-My-Own-Computer perspective. AMD doesn't care about selling to you. You're pocket change. AMD wants to sell to Dell, Compaq, HP, Gateway....the commercial market. And right now AMD is claiming that because of financial blackmail, Intel is keeping AMD from being able to compete in that market.
Re:Anti-Trust (Score:2)
And indeed, as another poster pointed out, anti-trust laws are necessary (though not sufficient) to prevent monopolies from forming. I think we all know what harm monopolies can do...
Remember the K7M? (Score:2)
Here's a link to help you remember:
http://www.anandtech.com/mb/showdoc.aspx?i=1153 [anandtech.com]
Click on the board's picture and look for the Asus name. It's usually printed quite clearly on the PCB.
You may remember the past as rosey, but I remember the FIC SD11, Asus K7M, and the Gigabyte boards as the only three available. No manufacturer wanted to piss off Intel. I
None of this is "all of a sudden" (Score:3, Insightful)
Athlons came much, much later.
Maybe they're starting to get frustrated that they don't have more marketshare than Intel already?
They're usually cheaper, and they usually outperform.
It can take a while for an engineering company to realize that their competition is being underhanded. Today, it's certainly late enough in t
Re:Anti-Trust (Score:2, Interesting)
Intel tires of putting so much time and money into chip development and tech advancement to protect their share of the pie, resources they'd much rather spend on marketing ("Intel Inside" - then those four little musical notes we
Re:Anti-Trust (Score:3, Informative)
Yes, because Intel's actions were greatly limited by anti-trust law!
Intel is alleged to have anti-competitive practices by basing their prices to OEMs on how many AMD parts they sold, as a direct financial incentive to not buy AMD, and supposedly several major OEMs caputilated entirely and dropped AMD from their lines. Yay market?
And that's with Int
lawyers (Score:2)
Damages (Score:3, Interesting)
Intel is saying that AMD shot themselves in the foot by not having enough production capacity, and even if Intel leveraged their weight against AMD, there were no damages as a result of it.
If the court finds in favor of AMD, it'll add up to a small fine and some bad press... unless AMD can prove damages and make Intel pay.
AMD (and any other plaintiffs, should the cases be consolidated) has a hell of a battle in front of them.
If you break the law (Score:2)
Re:If you break the law (Score:2)
The point of the suit is not to punish Intel (although that is often a byproduct) -- the point of the suit is for AMD to be compensated for their loss.
Re:LOTS of damages. (Score:2)
Re:LOTS of damages. (Score:2)
Re:LOTS of damages. (Score:2)
Unless they can demonstrate damages, not much at all. The amount awarded is dependent upon the damages they suffered.
Any punitive damages awarded will likely depend upon how preponderant their evidence is, among other factors.
The reason for the lawsuit (Score:5, Insightful)
AMD can't sell the Turions in the white-box market, where most of its CPUs are being sold, and must rely on bigger players in the PC industry, like Dell or HP to include it in their notebooks.
After all, who builds his notebook himself at home?
Now just the fact of the existence of the lawsuit will force Intel to tone down on their rebate practices, and this may open a window for AMD to sell the chips in quantities larger than the bare usually allowed by Intel's rebate system.
Good luck, AMD!
Re:The reason for the lawsuit (Score:2)
All AMD has to do is get Intel to back off a bit from stuff that would get them in hot water legally, and AMD has invested the lawsuit money wisely.
They don't need to win, they merely need to get Intel to be a bit more paranoid about sticking to the letter of the law in their dealings with OEMs.
I really wish AMD the best with this lawsuit, because in my opinion, they make a superior product, for
Re:The reason for the lawsuit (Score:2)
japan busted intel for the very same things amd is "alleging".
and south korea is also moving to bring charges against intel.
intel=microsoft. for people who have a clue as to what goes on in the industry, they know it as fact.
they aren't rumors to people in the know.
Surely thats no defense. (Score:3, Insightful)
So basically their saying that AMD also had the oppurtunity to act as deceitfully as Intel do, but because they didn't it's their own fault?
Sounds like an admission of guilt to me.
Just stop it, Intel (Score:2)
Hey, everyone, lookit here! AMD has crap management! They can't meet demand for their product! Their production is teh suxx0r!
Too much Kool-Aid around here! (Score:4, Insightful)
Seriously people, a lot of you need to start looking at things more objectively. Maybe Intel illegally leverages its market power. Maybe poor planning and management have hindered AMD's growth.
But to dismiss either side purely on ideology doesn't speak highly of your ability (or willingness) to comprehensively consider issues like this.
Let's wait for the facts to come out, and then we can start making our judgements.
Re:Too much Kool-Aid around here! (Score:5, Insightful)
It's the deals like this that make it really tough for AMD. Admittedly, as a customer, I can't find a vendor that satisfies my need for an inexpensive, reliable, AMD-based server. Looking a their pricing, this isn't AMDs fault and I don't really believe it's a technical issue either.
Similarly you'll note the dearth of 4+ processor AMD systems. This is important. Their MP model makes it easy to scale this high and it shows in the custom market (many 32/64 proc Opteron options if you're buying a custom-built supercomputer). However, the low end ones are not being built and its only because Intel puts a lot of pressure on its technology partners to insure that they can't afford to build a sub-$800 8-processor Opteron board. Either you lose your processor pricing or you'll get exciting new "patent-licensing" deals.
WRT to the market forces involved, the assumption is that, barring bad management, a good product at the right price should prevail. While Intel can complain about AMD's management, I think the problem is that they never have the money to operate correctly because of Intel's influence. The effective choice is that your management can hinder the company to match the amount of business the monopolist lets you have or it can operate with an aggressive but realistic business plan that falls on its face because of illegal practices. In short, Intel says, "your management should have planned for the material damages from our illegal activities" and AMD should very much answer "damages are damages, it may not have been really good business to not account well for them, but that doesn't dimish your responsibility for the damage".
And as for "waiting for the facts to come out", this is a court room. I'm sure any facts involved will be mangled beyond all recognition once they finally "come out".
Re:Too much Kool-Aid around here! (Score:2)
From that point on, everything you say is speculation. It all might very well turn out to be true, but that's why we have courts to determine these things instead if incredibly biased mobs.
I suspect that you won't be satisfied with any court ruling in favor of Intel, or against AMD. That tells me that "winning" is more important to you t
Re:Too much Kool-Aid around here! (Score:2)
As far as I can tell, you still can't.
The only Supermicro board I can find that supports AMD is the H8DCE [supermicro.com] which does not seem to be available to retail customers.
I even wonder if this board's existence is a result of the AMD lawsuit. For a long time now I've been puzzled as to why Supermicro was so steadfast in it's Intel-only stance. For a company that specializes in wide range of server boards, you would think they woul
Of course Intel is saying that (Score:2)
Of course Intel is saying that they're a monopoly because AMD produces faulty products.
No company it its right mind is going to confess to maintaining an illegal monopoly, at least not with the current administration and weak anti-trust laws. Intel is going to go into court with a straight face and say "It's AMD's fault, and the customer's choice", and they are going to keep saying it.
It would be news if they said anyting else.
Re:Of course Intel is saying that (Score:2)
It is not illegal to be a monopoly or maintain a monopoly in the US. If you're so successful that you beat the pants off everyone else in your market, that's fine.
It is only illegal to use your monopoly position to shut competition out of the market through preferential supply, below-cost pricing, or back-room dealing.
For example, most public utilities, ILECs, Major Leage Baseball, and ICANN are all monopolies that are legal in the US.
This reminds me of 3Dfx v/s nVidia (Score:3, Interesting)
Then, to the surprise of all of us, nVidia bought 3Dfx, dismissing all the mutual lawsuits and absorbing (or ditching, if you want) all of its technology.
However, any similarities are just that.
Regards,
AMD Admits capacity restriaint - NOT suffering (Score:2, Insightful)
SO, how can AMD argue that they are under the thumb of a vicious monopoly when they themselves are responsible for their own lacking ability to truley attack the marketplace? Is Intel to blaim for their unwillingness to invest in adequate production to meet the demands of a g
Re:AMD Admits capacity restriaint - NOT suffering (Score:2)
AMD admits that now they are capacity restrained, but that was not always the case. The reality is that AMD has begun to chip away at Intel in the last two years, but that's not a result of Intel releasing its iron grip on OEM's -- its just a matter of AMD having the clearly superior product. But the AMD's claims suggest, that if AMD and Intel had *equal* products, AMD's market share would not improve, even if their prices were lower.
Using evidence of capacity would be holding AMD's own against-all-advers
Monty Python banter (Score:2)
Brian: I'm not the Messiah! Will you please listen? I am not the Messiah, do you understand? Honestly!
Girl: Only the true Messiah denies His divinity.
Brian: What? Well, what sort of chance does that give me? All right! I am the Messiah!
Followers: He is! He is the Messiah!
Brian: Now, fuck off!
[silence]
Arthur: How shall we fuck off, O Lord?
Shocking news (Score:2)
Re:AMD doesn't do business with (Score:3, Insightful)
Doesn't do business with many of those same companies, eh? I though that was one of the major points of the lawsuit
Go back and read again, especially the part where it says "AMD currently DOES buisiness..."
I believ
Re:Yawn (Score:2)
is that an acceptable business practice?
or if goliath rounded up all the rocks in the area before hand.
your analogy only makes sense if you remove the part where intel is doing illegal stuff. they have every right to compete WITHIN the law. but once they go outside, by definition it is criminal behavior. and it hurts the customers and the industry.