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AMD claims Intel coerced PC makers
AMD claims Intel has unlawfully maintained its monopoly in the chip market by forcing PC manufacturers not to build systems featuring AMD’s chips. The company filed and anti-trust lawsuit in the US and Japan and made public a damning list of evidence, which includes claims that the likes of Dell, Sony and Toshiba were given outright cash payments for adopting Intel-exclusive deals.The complaint alleges that Intel paid Sony millions for exclusivity, causing AMD’s share of the Japanese manufacturer’s business to plummet form 23 per cent in 2002 to 0 per cent today.Its also claimed that Intel punished HP when the PC maker put AMD on its notebook roadmap by withholding a rebate payment, and threatened Acer’s chairman with ‘severe consequences’ for supporting the AMD Athlon 64 launch.Whether through higher prices from monopoly profits, fewer choices in the marketplace or barriers to innovation people from Osaka to Frankfurt to Chicago pay the price in cash every day for Intel’s monopoly abuses, said Hector Ruiz, AMD chairman of the board. Ruiz said the Japan fair trade commissions march ruling that intel japan was violating anti-trust laws had encouraged his company to pursue claims for $55 million in damages, and AMD executives said the European commission was also looking into the issue. Intel fiercely denied any allegations of wrongdoing and said it would defend its position ‘we unequivocally disagree with AMD’s claims and firmly believe this latest suit will be resolved favourably. Like the others, said Intel’s president and chief executive officer Paul Otellini. Intel is said to have an 80 per cent share of the worldwide desktop chip market by unit volume, and 90 per cent by revenue.
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