AMD CEO Hector Ruiz took center stage at the American
Antitrust Institute National Conference in Washington, D.C. to express his
disdain for Intel’s business practices.
“I want to give you an idea of what it’s like to do business
day in and day out when you are competing against an abusive monopolist,” Ruiz
told attendees. “How it makes no difference whether you are just as efficient –
or even more efficient – than they are.”
“I do not need my fortune teller hat to tell you one truth
about which I am absolutely certain,” said
Ruiz. “There is no proper or defensible place for illegal monopolies in the
21st century global marketplace... My purpose is not to argue for competitive
advantage - we know how to compete. My purpose is to lay out the facts so that
law and economics can do their job to protect consumers."
Ruiz did not immediate call out Intel, but rather stated his
case first by naming several related companies made possible by the allowance
of new entrants. “Google, Microsoft, and computer manufacturers like HP and
Dell all owe their existence to the simple fact that competition replaced
forced exclusivity and allowed a variety of players to compete and succeed,” he
The AMD boss then called out its arch rival, boldly stating,
“Intel uses illegal tactics explicitly aimed at preventing customers from doing
business with AMD.”
AMD has been battling with Intel
in the U.S. courts over what it believes to be anticompetitive
practices. Ruiz presented the example of his company’s efforts with HP,
where the systems builder feared retribution by Intel if it chose to use AMD
Dell is facing a class action lawsuit
from its own investors over “secret and likely illegal” kickbacks by Intel
to ensure the exclusive use of its chips inside Dell computers. “Computer
manufacturers are dependent upon Intel's ‘rebates’ for a large portion of their
razor-thin operating margins and must sacrifice their brand in favor of
promoting Intel,” Ruiz adds.
“The IT industry is being held hostage by Intel – a fact
that has detrimental effects across the board, and it has gone on for too long,”
continues Ruiz. “Customers get hit by less choice and PC manufacturers depend
on rebates and "must sacrifice their brand in favour of promoting Intel.”
“I think that is a vision we share, as business leaders,
regulators, economists, lawyers, and others dedicated to ensuring fair and open
competition in the market. And I believe it is our responsibility – not just to
the global economy, but to society as a whole – to make that happen.” Ruiz
later concludes, “In an IT industry without an abusive monopoly, computer
manufacturers are empowered to flourish because innovation and differentiation
are rewarded – rather than be obligated to a single supplier. The benefits are
passed on to consumers through lower prices and greater choice in the
quote: AMD never made anyone buy the FX models that were 'overpriced'
quote: You are severely oversimplifying matters, and using only 'logic' instead of any knowledge of actual laws. ... I do not know the US law definition for a monopoly
quote: Also, the fact that AMD increased market share, is not a basis to completely discount the accusations. Intel could have used those practices on only one company, without severely impacting market share.
quote: OK, so let me get this straight - you're saying I don't know and/or are not applying the law, and then you admit to now knowing the law yourself? That's priceless.
quote: No, I'm not an attorney - so that's the best I can do is to apply common sense and logic and see how far it gets me. Anyone with more knowledge (that excludes you, Spoelie!) please feel free to explain if I am wrong.
quote: - Single Seller: For a pure monopoly to take place, only one company can be selling the good or service. A company can have a monopoly on certain goods and services but not on others.- Significant Barrier of Entry: If a company has a monopoly on a good or service, it becomes prohibitively difficult for other firms to enter the industry and provide the same good or service.- No close substitutes: Monopoly is not merely the state of having control over a product; it also means that there are no close substitutes available that fill the same function as the monopolized good.- Price maker: Because a single firm controls the total supply in a pure monopoly, it is able to exert a significant degree of control over the price by changing the quantity supplied.
quote: Tying was first made potentially illegal in the United States by the Sherman Antitrust Act. Section 1 of the act prohibits tying if the firm has "economic power" in the tying good, and a "non-trivial" amount of business is affected by the tying.
quote: No, I'm not an attorney
quote: Anyone with more knowledge (that excludes you, Spoelie!)
quote: It's about how AMD had made such a great product the past few years, just leaps and bounds better than NetBurst, and they couldn't even break 25% market share. Seems a little strange.
quote: You can't deny tho that they'd most likely have enjoyed even more success with the big oem's all on board and fully co-operative.
quote: The AMD boss then called out its arch rival, boldly stating, “Intel uses illegal tactics explicitly aimed at preventing customers from doing business with AMD.”
quote: They are trying to get around the chipset monopoly power Intel uses by having an exclusive chipset of their own (the goal of the ATI/AMD merger) but even thats costing them billions, and it still wont completely eliminate the chipset pressure Intel puts on vendors.
quote: There have been many articles listing alleged things iNtel has done. Seems like there's such an article every few months that I see, so they must be very much more numerous than that.
quote: What's he supposed to do?
quote: What's he supposed to do?
quote: Our country is trying to kill capitalism. Intel is using every tool in the shed to kill their competetion.
quote: You can say right now that AMD does not have a competitive product, but look at how many people bought the prescott p4. It doesn't matter even today if they still sold that crap, they still would have more market share.
quote: I do not need my fortune teller hat to tell you one truth about which I am absolutely certain,” said Ruiz. “
quote: AMD CEO Hector Ruiz took center stage at the American Antitrust Institute National Conference in Washington, D.C. to express his disdain for Intel’s business practices.
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quote: How about Hector ships a competative product instead of flapping his lips for a change.
quote: I think he is a desperate man making desperate statements.
quote: I think this needs to be resolved with a law. In the long run costumers will be the one who loose the most.
quote: Fierce competition has lead to dropping prices and improving and innovative prices. How is the customer suffering under the oppressive hand of a monopolist
quote: That hurt AMD. AMD had a much better product, at better prises, but still Intell illegally prevented them from entering the market.
quote: When a firm has such power, it hurts innovation, competition, and removes the passionate, intense, and ridiculously cool effects of survival R&D from occuring with the lions share of profit generated by that industry.
quote: I for one would be the first to shove that stratocaster right where the sun does not shine.