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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 259.65+2.3%Jan 23 9:30 AM EST

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To: Windsock who wrote (226224)2/17/2007 6:45:24 PM
From: fastpathguruRead Replies (2) of 275872
 
Guys, you have a couple major problems with your legal analysis.

1 AMD alleged lots of fantasies in their complaint but never alleged that Intel used different discount schedules for different customers.


Wrong. Paragraph 60 of AMD's complaint:

"Intel intentionally sets a rebate trigger at a level of purchases it knows to constitute a dominant percentage of a customer’s needs. It is able to develop discriminatory, customer-by-customer unit or dollar targets that lock that percentage (without ever referencing it) because industry publications accurately forecast and track anticipated sales"

amd.com

2 AMD never alleged any violation of the Robson Patman Act. Perhaps AMD's lawyers had a better grasp of the facts and the law than you do.

AMD alleges violations of the Clayton Act, which the Robson Patman Act amends.

Oops, not doing so good.

3 The same goods can be sold to different customers under a "meeting competition defense". Certainly, the Robinson Patman expets on this board can explain how this works.

"Meeting", not "Excluding." Under the "meeting competition" defense, a competitor is allowed to sell at below cost, but only to match, not beat, the price of a more efficient (thus with lower costs) competitor's equivalent product.

See section 2b of the Clayton Act.

With volume bundling arrangements (as AMD alleges Intel used) tuned to each competitor's purchasing volume requirements, the price of units beyond the target volume is far below cost.

Ouch, 0 for 3. Not too good.

fpg
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