Gadget Bugg: Tech News: Antitrust Lawsuit Filed Against Intel, AMD Claiming Monopoly

Thursday, November 12, 2009

Tech News: Antitrust Lawsuit Filed Against Intel, AMD Claiming Monopoly


The processor manufacturer Advanced Micro Devices (AMD) filed suit Monday against chip giant Intel claiming Intel's shady business arrangements are illegal. Intel, who has been giving computer manufacturers huge rebates and discounts on its chips has recently settled with AMD for $1 billion dollars (that's billion, with a "b"). In a normal market, the courts argued, Intel's actions would have been legal, but because there are only two major computer processor manufacturers (80% of which is owned by Intel according to IDC) Intel is teetering on the edge of monopoly.

The fact that Intel gained control of Apple and up until recently had manufactured the only processor for consumer "netbooks" didn't help it's case. According to cnet.com, Not only was Intel's foothold on the American trade, but in Japan the deals were getting so vast that it convinced Sony, Hitachi, and Toshiba to not buy or vastly limit the purchases of chips made by AMD.

Experts say, however, that this wasn't the first bite AMD took at Intel and it certainly won't be the last. In 2000, AMD claimed that Intel was violating European anticompetition laws through its marketing. AMD has even taken the liberty of creating a website pleading its case.

As for now, it seems as though the battle will keep drudging on, Intel devouring the competition while AMD struggles for breath. Well, at least AMD still has HP, right?

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