AMD Sues Intel, Charging Threats Made to Customers

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

Advanced Micro Devices has filed an antitrust lawsuit against Intel, claiming Intel cemented its dominance of the computer-chip market by coercing and threatening dozens of customers.


Intel used “old-fashioned threats, intimidations and ‘knee-capping’ ” to persuade 38 companies including Dell, Sony, and Toshiba, to exclude Advanced Micro chips from their computers, Sunnyvale, Calif.-based Advanced Micro said in the lawsuit filed in Delaware court Monday.


The suit illustrates the growing frustration of Advanced Micro’s CEO, Hector Ruiz, with his company’s inability to dent Intel’s 80% market share. Filing the suit now may help Advanced Micro capitalize on a March ruling by Japan’s Fair Trade Commission that said Intel unlawfully offered discounts to PC makers if they agreed to limit their business with rivals.


“Intel is aggressive, and they have made comments and done things to push people around,” said Daniel Morgan of Synovus Investment Advisors in St. Petersburg, Fla. “Intel has a lot of firepower behind them.”


“AMD has chosen once again to complain to a court about Intel’s success with a legal case full of excuses and speculation,” Intel spokesman Tom Beermann said. “We strongly disagree with AMD’s complaints about the business practices of Intel and Intel’s customers.”


Advanced Micro’s approach, an escalation of 18 years of legal battles, is “based on throwing everything but the kitchen sink at Intel in the hopes of getting something to stick,” Moors & Cabot analyst Hans Mosesmann said.


The New York Sun

© 2024 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  create a free account

By continuing you agree to our Privacy Policy and Terms of Use