June 07, 2008

Antitrust Case To Bust Intel?

If AMD has its way, it just might.

A.M.D. has accused Intel of systematically giving its customers — the world’s leading personal computer makers — large discounts, at times below Intel’s own manufacturing costs, in exchange for commitments not to do business with competitors. Intel has responded that its discounts were legitimate incentives, not offered below cost, and benefiting customers who can buy computers at lower prices.

Intel has also maintained that A.M.D. tried to make up in the courts for its failures in the marketplace.

While Intel has denied the allegations, A.M.D. executives are hoping the case will present an easy opportunity for the next administration to take a noticeably more aggressive approach to competition issues. Technically independent of the White House, the trade commission is led by appointees of the president.

The charges, if true, would be indicative of a major violation of antitrust law. The possible result? Think about what was done to Ma Bell in the 198os..

Posted by: Greg at 12:29 AM | No Comments | Add Comment
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