Intel (INTC) Gets Big Victory Over AMD (AMD)

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AMD (AMD) has accused Intel (INTC) of creating a monopoly in PC and servers chips by using its size to give customers special deals to do business with it exclusively. The European Union and Korean regulators have taken the bait and are pushing their own investigations hard. They believe that Intel may have kept its pricing low to push AMD out of some markets.

The FTC has decided that there is not enough evidence to push a case against Intel, a huge blow to AMD. According to The New York Times "the trade commission has been conducting an informal review of A.M.D.’s complaints for more than a year, gathering thousands of documents from Intel and its customers. But the commission’s chairwoman, Deborah P. Majoras, has rejected requests to elevate the inquiry to a formal investigation."

The fact that AMD cannot get an investigation in it home market undermines its view of the world as one where Intel will do anything to get and keep PC business.

AMD can now fight its battles in Europe and Asia where regulators may be more interested in its charges. Based on its last quarter numbers, that may be all the fight it has left.

Douglas A. McIntyre