June 28, 2005

AMD Sues Intel for Anti-Trust Violations

AMD sued Intel today for monopolistic anti-trust violations. In a 48 page lawsuit, AMD accuses Intel of using its monopoly power to coerce and bribe PC manufacturers from using AMD chips. AMD says Intel paid these companies huge cash payments, cut-rate pricing, and marketing subsidies as long as they didn't use AMD CPUs.

Among the alleged abuses detailed Monday in AMD's 48-page complaint, the company said former Compaq CEO Michael Capellas complained that Intel withheld delivery of server chips in 2000. Saying "he had a gun to his head," he told AMD he had to stop buying its processors