AMD scores as FTC opens investigation into Intel

09 June 2008

The opening of formal opening of formal antitrust investigations by the US Federal Trade Commission into accusations that Intel, the world's largest computer chip maker, has designed its pricing policy to maintain its near-monopoly in the microprocessor market, comes as Advanced Micro Devices (AMD), which has been fighting a bigger pie of the $225 billion global market for computer chips, ran a steady campaign against Intel's alleged pricing practices that violate antitrust laws. (See: Federal Trade Commission orders antitrust inquiry into Intel's business practices)

''In every country around the world where Intel's business practices have been investigated, including the decision by South Korea, the company has been found to be violating fair trade laws,'' Thomas M McCoy, AMD's executive vice president for legal affairs and chief administrative officer, said in a statement.

''Intel must now answer to the Federal Trade Commission, which is the appropriate way to determine the impact of Intel practices on US consumers and technology businesses,'' McCoy added.

The commission has started making inquiries with Intel, its smaller rival AMD, and personal computer makers that buy semiconductors from the two companies.

The inquiry, ordered by William E Kovacic, the new chairman of the trade commission, has the support of the agency's other commissioners.

An earlier inquiry has been blocked by months of delays under previous trade commissioner Deborah P Majoras, frustrating moves by other senior commission officials and US lawmakers.