Intel fires back at AMD in antitrust case, denies anti-competitive behavior

A reason Intel provides for its superiority in certain markets is AMD’s apparently not up-to-par track record as reliable supplier. "AMD’s reputation as reliable supplier has been questioned over the years and continues to affect the company’s business performance today."

Intel, however, does not only defend itself from allegations, but attacked AMD’s obvious soft-spots such as recent remarks made by the Texan manufacturer’s executive management as well as claims that Intel’s monopoly artificially inflates processor pricing. For example, Intel quotes AMD chairman Hector Ruiz who recently has told investors that AMD "is in the strongest position we’ve ever been in." Intel also describes its leadership in the market as a result of investments it made during the economic downturn between 2001 and 2003 - while AMD scaled back its investments during that time, the filing states. According to Intel, AMD’s claim that Intel maintains high processor pricing by lowering the pricing of its processors is "inherently contradictory."

In the light of an analysis of the case, which Tom’s Hardware Guide published in July of this year, Intel responded as expected. The filing however, does not clear up several doubts AMD has raised about Intel’s actions to provide itself some competitive advantages through unfair practices. Several Fortune 500 companies have confirmed in conversations with Tom’s Hardware Guide, that their vendors are unable to supply AMD-based systems as a direct result of Intel’s behavior that in fact uses discounts as "predatory weapon."

While Intel may be very vulnerable, if AMD can convince vendors to testify against Intel, AMD’s weak side remains marketing and its own processor pricing strategies. In recent months, the company has shown several times that it has little interest in driving processor prices lower, if it can achieve competitive advantages over Intel products. Instead, AMD charges whatever the market will bear - just as Intel or any other business.

AMD already answered to Intel’s filing, stating that "Intel’s response is not surprising considering what they are trying to hide, but the facts of illegal monopoly abuse are clear and undeniable."

"We look forward to presenting our evidence in front of the entire industry and the entire world. Let’s put the truth on the table and let the court decide," said Thomas McCoy, AMD executive vice president, legal affairs and chief administrative officer.

Intel’s filing sets the stage for an ugly battle in court that is likely to last years and has the potential to alter the landscape of processor industry. AMD expects the trial phase to begin at the end of 2006. Looking at similar antitrust cases in the IT industry, a final verdict could be reached in 2008 or 2009.