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Politics : Formerly About Advanced Micro Devices
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To: Jim McMannis who wrote (55074)4/10/1999 11:31:00 AM
From: nihil  Read Replies (2) of 1580693
 
Price fixing?

That's why I said "implicit." DOJ has struggled long without success to outlaw implicit price fixing (tobacco and cereal investigations were pursued fruitlessly). As long as AMD initiates the stabilization process (it has no market power and is not a monopolist) and Intel responds so as not to undercut AMD's prices, there is nothing DOJ or FTC can do without evidence of price fixing. I've talked to staff at both DOJ and FTC about similar duopolies, and I always get the same response -- we need reliable sworn internal evidence of collusion or there is nothing we can do. As long as the cooperation is pursued in the context of game theory and explicit agreement is avoided it is IMO perfectly safe for the rivals to pursue.
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