Yet another Intel antitrust probe

Here we go again. This time it was New York State Attorney General Andrew Cuomo who ceremoniously launched an investigation into monopolistic practices by Intel.

"Our investigation is focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation," Cuomo said in a statement.

The competitors in question are AMD, AMD, and of course, AMD.

In 2005, AMD continued its longstanding policy of publicly whining about Intel with a lawsuit alleging anticompetitive practices by its Silicon Valley neighbor.

In addition, Europe, South Korea, and Japan are currently in the midst of antitrust investigations into AMD's longtime nemesis.

In a statement, Sen. Charles E. Schumer of New York said, "Antitrust investigations into Intel are springing up everywhere except Washington. It's high time the FTC woke up and started looking into practices that are harming American consumers and technological innovation."

Wrong. The Federal Trade Commission spent years investigating Intel through most of the '90s. The investigation turned into a formal complaint but ended in an "Order Withdrawing Matter From Adjudication," also known as "Sorry we wasted all of your time, but we've got bupkis, zilch, nada."

Although it dominates the market for personal computer microprocessors, Intel has consistently managed to elude conviction for anticompetitive practices. The chip giant's policies and actions related to such matters have to-date remained on the right side of the law. That's probably a result of the teachings of super-paranoid ex-chief Andy Grove.

You might want to check out an excellent story about Intel's sales practices by none other than CNET News.com editor at large Michael Kanellos here.

I, for one, remain skeptical that Intel will actually get caught crossing that fine antitrust line. But who knows; maybe this time it'll be different. After all, anything can happen in a courtroom. Just ask the other half of the Wintel duopoly--Microsoft.

[gsmiller88]

Yawn...

I remember when everyone was for the underdog (AMD) in this battle, but after the endless amount of whining and bickering on their behalf that seems to no longer be the case.

How can AMD complain about Intel stifling competition and innovation, it isn't Intel's fault AMD has had to delay 90% of their new products over the past year!

[tbsteph]

AG Cuomo, Senator Schumer, the EU, amongst others, are constantly assaulting high profile US tech companies (INTC, MSFT, AAPL etc.) for either money (EU), perceived political advantage (Schumer) or perceived future political gain (Cuomo). No good deed goes unpunished.

[brchoate]

I think you have a legitimate point about US entities pursuing high tech companies like Intel and Microsoft, because US antitrust laws are far more forgiving than the laws of the EU or even some Asian nations. Furthermore, there is no real precedent in the US for going after companies for the practices and actions of Intel. However, the EU antitrust laws are far less forgiving and usually revolve around abuse of dominant position principles, which makes sense in many ways if you seek to foster a competitive environment. I think Cuomo and others are beginning to attach themselves to the EU's view of dominant abuse in order to try and foster more competition. I guess the most important question is whether or not the EU's take on things and any remedies/penalties it imposes actually do anything to foster a competitive environment--the track record appears to be that they do not. And, of course, the other issue is whether or not competitive losers are using these rules/law as a crutch as opposed to reflecting inward and trying to become more competitive through organizational change.

Bryan Choate
http://sultanofsemiconductors.blogspot.com/

[ykhan67]

"The competitors in question are AMD, AMD, and of course, AMD."

Of course it's only AMD. Intel has already killed off or driven away all of its other competitors over the years, including Cyrix, IDTI, NEC, IBM, etc. If not for AMD, we'd be stuck with a full monopoly. Stop whining about AMD whining, there's a good reason for AMD to do so. You can't say the same about you.

[jlm429]

I think AMD just agreed to build a plant in the Albany area of NY. Sounds like quid pro quo.

[frasercrane]

And where are the Intel factories ...