Capellas: Intel Had A Gun To His Head

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AMD files an antitrust suit against Intel, accusing it of “old- fashioned threats, intimidation and ‘knee-capping’ to deter OEMs from dealing with AMD.”

On a conference call with the media yesterday, AMD CEO Hector Ruiz accused Intel of a variety of anti-competitve actions, and his company’s frustration with being very distant second to Intel in the processor market finally boiled over.

In a 48 page complaint filed with the US District Court of Delaware, AMD accuses Intel of using bribery, coercion, and threats to maintain its market status.

Some reporters on the call questioned the choice of the Delaware court rather than California. An AMD attorney cited the progressiveness and expertise of that District. It is likely West Coast journalists are not familiar with the tiny state’s Court of Chancery and its over-two centuries of business case law.

Judge Joseph Longobardi comes from the Chancery system, and could be the one who ultimately hears the case.

And the case promises to be entertaining. AMD has accused Intel of interfering with 38 companies in preventing AMD from obtaining any significant presence in the marketplace.

AMD claims it is only looking for the opportunity to compete fairly in the marketplace.
It cites several examples where OEMs felt they could not do business with AMD. Michael Capellas formerly headed Compaq, where Intel refused to deliver server chips they needed due to Compaq’s AMD deals.

Without those chips, Compaq would not be able to make its numbers, a situation Mr. Capellas describes as Intel having “a gun to his head.”

Intel rejects AMD’s complaint. “We strongly disagree with AMD’s complaints about the business practices of Intel and Intel’s customers. Intel believes in competing fairly and believes consumers are benefiting from this vigorous competition,” Intel said in a statement.

“AMD has chosen, once again, to complain to a court about Intel’s success, with a legal case full of excuses and speculation. Intel will respond appropriately to AMD’s latest complaints and is committed to successfully resolving these issues in court.”

David Utter is a staff writer for WebProNews covering technology and business. Email him here.

Capellas: Intel Had A Gun To His Head
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