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
said.
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
processors.
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
marketplace.”
