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Politics : Formerly About Advanced Micro Devices
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To: Paul Engel who wrote (23503)9/26/1997 5:41:00 PM
From: Petz   of 1579131
 
Paul - Re: " IT IS THE LAW OF THE LAND."
<<What act of Congress is this law contained in?>>
The Sherman Anti-Trust Act has been interpreted to mean that if a company has a de-facto monopoly in one business, it may not unfairly use its position to obtain a monopoly in another business segment.

"Unfair" practices include use of profits in monopoly segment to subsidize non-monopoly segments as well as use of inside information.

The chipset segment is probably the greatest area of vulnerability for Intel because it currently has a large, but not majority business. While Intel is certainly not selling its chipsets at predator prices, it certainly uses its inside information about future Intel processors to stay ahead of the competition and push towards monopoly market share.

The graphics chip business probably isn't a problem until Intel achieves 50% market share, which may never happen.

Besides Sherman, there is another law which prohibits more than one company from combining to boycott another company or even conspiring to boycott another company. I believe the conditions attached to the INTEL INSIDE campaign constitute a conspiracy to boycott. Isn't it true that a company is prohibited from displaying INTEL INSIDE if it also sells K6 computers?

The fact is, the Clinton administration has done diddly squat in the area of anti-trust. The agreement by Microsoft to set up the "Chinese Wall" between the OS Development and Application Development divisions was set up during the Bush administration and who knows whether this is really being enforced. Intel may get away with boycotting and monopolistic competition.

Petz
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