New York attorney general files antitrust lawsuit against Intel
"No matter how it tries, Intel just can't shake those pesky antitrust monkeys off its back: the attorney general of New York today filed a federal antitrust lawsuit against the chipmaker, saying it unfairly prevented AMD from competing under state and federal law. That's pretty much what the EU just fined Intel $1.45b for in May and exactly what AMD itself is suing Intel for in Delaware, so we're guessing things are a little busy for Chipzilla's lawyers right now -- and it's just going to get worse, as the smart money says this is all just a precursor to the Federal Trade Commission dropping the hammer sometime soon. Hey, maybe this would be a good time to for Intel to distract everyone with some USB 3.0 chipsets?"
"The lawsuit charges that Intel violated state and federal laws by abusing its dominant position in the chip market to keep its main rival, Advanced Micro Devices, at bay. Intel has faced similar lawsuits in Asia and Europe, and in May the European Commission fined the company a record $1.45 billion for antitrust violations.
“Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,” Mr. Cuomo said in a statement. “Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”
There's a very interesting comment in the engadget article.
Quote:
I don't think most people know exactly what this means. New York's AG is Andrew Cuomo. Simply put, this guy serves out justice like candy on Halloween. His idea of "fun" is ruining bad guys' lives in order to benefit just about the ENTIRE NATION.
For example, he discovered Student Loan manipulation on the parts of lenders and universities. He pressed charges against many universities and, in response, many of those ***universities*** REFUNDED students money. Additionally, his office discovered a huge healthcare fraud situation by United Healthcare. They had done terrible things, such as refusing cancer treatment for people, claiming that cancer was a "pre-existing condition." He's done plenty of other things, such as taking down Eliot Spitzer for both his sexual escapades and his inappropriate use of law enforcement for surveillance of State Officials.
So, what I'm trying to say is this: INTEL IS SCREWED. BIG TIME.
But Intel are innocent, those Eurocrats are nothing but people meddling with other peoples business why do they even care about a company based in the states!
But Intel are innocent, those Eurocrats are nothing but people meddling with other peoples business why do they even care about a company based in the states!
This should be fun
Oh yes and it alredy began
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The difference is that this time his accusations are against Intel.
Uuuh,since it's intel it must be a "challenge" for this guy,right?
I bet this dude is going to take them down easier than eu did.
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135. On November 4, 2005 Otellini reported internally in a “Confidential — DO NOT FORWARD” email about “one of the most emotional calls I have ever, ever had with [Michael Dell].” In this email, Otellini wrote:
- [Michael Dell] opened by saying “I am tired of losing business” … he repeated it 3-4 times. I said nothing and waited.
- He has been traveling around the USA. He feels they are losing all the high margin business to AMD-based sku’s …
- He is ‘tired of being behind for 4 years (when I protested that it was 2, he said, no the last 2 years, this year, and next year).
- As a result, “Dell is no longer seen as a thought leader”
136. On Nov. 10, 2005, Michael Dell followed up with an email to Otellini: “We have lost the performance leadership and it’s seriously impacting our business in several areas.” Otellini’s reply: “There is nothing new here. Our product roadmap is what it is. It is improving rapidly daily. It will deliver increasingly leadership products … Additionally, we are transferring over $1B per year to Dell for meet comp efforts. This was judged by your team to be more than sufficient to compensate for the competitive issues.”
137. Michael Dell, however, continued to press home to Intel its performance deficit and its effects on Dell. On November 24, 2005 he capped an email exchange with Otellini by writing: “None of the current benchmarks and reviews say that Intel based systems are better than AMD. We are losing the hearts, minds and wallets of our best customers.”
139. On February 16, 2006, Intel took note of a service report in which Dell’s CEO Kevin Rollins had said that Dell had “made no plans to begin using” AMD chips. “Finally something positive” commented one Intel executive. Otellini commented: “The best friend money can buy.”
***
140. By April 2006, Dell’s relationship with Intel reached a breaking point. As Michael Dell wrote: “Intel – we overestimated both their ability to execute and our true competitive position with them and we underestimated AMD. And we relied too much on rebates from Intel.”
141. Dell was finally ready to act, despite the pressure and incentives from Intel. In an April 29 email to other top Dell executives, Michael Dell wrote: “We have been looking at the situation for a long time, and have decided to introduce a broad range of AMD based systems into our product line to provide the choice our customers are asking for.”
142. The reaction of Craig Barrett, Intel’s Board Chairman, was unequivocal: Dell should immediately be deprived of the payments it had long enjoyed in return for its willingness not to offer AMD products, and should start paying “list prices.” Barrett told Ottelini: “[T]hey have just signaled they are only interested in being a transaction based customer. I think you
should reply in kind. Not a time for weakness on our part. Stop writing checks immediately and put them back on list prices asap.” (Emphasis added).
143. The direction Otellini gave his subordinates the next day was consistent with Barrett’s advice. Intel should make clear to Dell that if Dell offered any AMD products all of the “mcp” payments Dell received from Intel would be at risk – just as Dell had always feared: “[W]e should be [pre]pared to remove all mcp and related programs. Post haste… then we ought to enter negotiations.”
Ouch. Double ouch. This is not good for Intel at all.
Think if they wrote AI "artificial intelligence" in parallel. Where you could have a program answer its own questions.You would have a form of intelligence. The main function of life is self-preservetion, apply this together and you got yourself a terminator
This is great and all, but if the money from all these cases don't go to AMD then what will they have accomplished other than exposing them and having them pay off a small ( for them atleast ) fine?
seriously amd is the one that should have been payed from beggining lol they are the ones that lost money
Their case against Intel hasn't even really started yet. But I think that if this one comes through and Intel will receive a fine in the US AMD will win that case for sure and get compensation for their lost business opportunities.
Their case against Intel hasn't even really started yet. But I think that if this one comes through and Intel will receive a fine in the US AMD will win that case for sure and get compensation for their lost business opportunities.
They'll be lucky to see a dime unless they pursue their own suit.
NY has a huge tax shortfall...bigger than most states...and is hoping to find a nice revenue stream, just like the EU.
Whether or not Dell or AMD would have a case against Intel, which they probably do, I don't see how the hell the State of NY has any legal ground to stand on for a suit. They weren't the ones that lost money and I think it's bull that any court would even hear the case with the state as the plaintiff unless they can demonstrate that the monopolistic behavior caused some harm to NY.
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They'll be lucky to see a dime unless they pursue their own suit.
NY has a huge tax shortfall...bigger than most states...and is hoping to find a nice revenue stream, just like the EU.
Whether or not Dell or AMD would have a case against Intel, which they probably do, I don't see how the hell the State of NY has any legal ground to stand on for a suit. They weren't the ones that lost money and I think it's bull that any court would even hear the case with the state as the plaintiff unless they can demonstrate that the monopolistic behavior caused some harm to NY.
They also have a responsibility to their citizens, and protection from the market is part of it. They are hired to serve and protect them above all else, and that is what they are doing.
As for AMD's civil suit, I don't think there is a shred of doubt left as to whether they will be rewarded compensation.
As for AMD's civil suit, I don't think there is a shred of doubt left as to whether they will be rewarded compensation.
And to that point, we have only seen a miniscule amount of evidence against Intel. Imagine what will come out in the civil trial.
Intel is royally screwed, the only way they get out of this is if they try to buy their way out. And when I say buy, I mean bribe, threaten, coherence, strong arm, or whatever else desperate measures they can think of.
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i bet you Cuomo is only doing this b/c he wants to make sure the new AMD plant in NY can bring in as much money as possible.
he wants more money for NY, not necessarily a bad thing.
i bet you Cuomo is only doing this b/c he wants to make sure the new AMD plant in NY can bring in as much money as possible.
he wants more money for NY, not necessarily a bad thing.
Here we go....
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Not that I am siding with Intel here, but all companies do this to some degree. Just cause Intel gave discounts on Intel based products to a 'Big Name' computer manufacturer is the only reason this is news.
Dell chose Intel stuff cause of the cost reduction, but gave up using AMD stuff. This kind of stuff happens everywhere. It's just when it's huge companies that it becomes a big deal.
I just had to deal with some crap like this this past week while trying to buy the new Motorola Droid at BestBuy. BestBuy doesn't honor Verizons New Every 2 year discounts, or their 1 year early upgrades. They can honor them, if they want, but it's up the the store. The stores don't want to do it cause it then cuts into the amount of money they get from Verizon. And Verizon doesn't want to let them sell the same deals they do, without cutting into their profits cause BestBuy also sells other carriers phones. Same crap, just a little different
Opening your argument with a false premise: "everyone does it so it's OK," means that we can safely ignore the rest of what you've written.
It's not OK to engage in anti-competitive behavior in the market, that's why we have laws against it and bureaucrats to enforce them.
You wouldn't have trouble buying your phone where you wanted if there weren't anti-competitive deals in place.
I'm not siding with them. I just see companies all over that do this kind of stuff. I really don't like it, but no one really cares, they only care about money. And the only reason NY state or EU, or whoever goes after these companies is to make money.
and it alredy began 
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