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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Elmer who wrote (82086)12/5/1999 12:44:00 PM
From: Jim McMannis  Read Replies (2) | Respond to of 1573648
 
I believe what Petz was refering to is called a "fair-trade" law.
I have a lot of experience with them but don't really want to go there. Getting out an Athlon before Christmas may have been too much of a rush job for Gateway...Intel may have helped that by giving something.
I'd downgrade Gateway to neutral, even sell, because of it though...

Jim



To: Elmer who wrote (82086)12/5/1999 1:15:00 PM
From: Dan3  Read Replies (1) | Respond to of 1573648
 
Re: If AMD is competitive then there's no monopoly...

Hi Elmer,

Anti-trust can occur in the absence of monopoly, and monopoly is irrelevant to extortion. And since these parts are crossing state lines, cases can be brought in Federal court, on the basis of interference with interstate commerce (gives the plaintiff some control over venue, which can be an important advantage).

If Intel is involving itself in AMD's contracts with Gateway, Taiwanese motherboard production supporting AMD chips and other areas, it could constitute threatening a second party with retaliation for what is essentially a third-party transaction. This could get them into trouble both civilly (interference with other's contractual relationships, RICO) and criminally (extortion, RICO, and anti-trust).

I'm skeptical that most of the measures being used by Intel would be considered illegal only in the context of monopoly. In any event, the rule of thumb is generally that having 2/3 of the market constitutes a monopoly, and we do have the recent Microsoft decision as a precedent, don't we?

Isn't Intel's current market share percentage mid 80s?

More than 3 instances of an illegal action trigger RICO, with its trebling of damages, and anti-trust violations are automatic treble damage awards statutes. Since we're potentially talking about multi-billion dollar damages, this could become expensive, even for Intel.

Regards,

Dan



To: Elmer who wrote (82086)12/5/1999 7:04:00 PM
From: Bill Jackson  Read Replies (1) | Respond to of 1573648
 
Elmer, Is an offer you cannot refuse a crime? From the mob? What about from intel? Attempted market coercion is a crime. To bribe them not to buy AMD is a crime. To hang any tail on what you sell to actions re buying from a third party is a crime.
Even co-op advertising money has areas to be caustious of.

Bill



To: Elmer who wrote (82086)12/6/1999 12:43:00 AM
From: Petz  Read Replies (2) | Respond to of 1573648
 
Elmer, re:<If Intel is a monopoly then AMD isn't competitive>

Where did you get this hairbrained idea? Just because Intel cheats doesn't mean they have to win. Your argument is as specious as Microsoft's argument that because Netscape is now alive and well under the protection of AOL, that therefore the slimy practices they previously practiced are not punishable.

AMD is competitive in spite of Intel's practices. Without these practices, such as punishing customers who sell their competitor's products, AMD would have a larger share of the market.

Even outside of monopoly law, the limiting of consumer's choices by punishing companies that offer a choice, does two anti-consumer things: it limits the consumer's purchase choices and by reducing competition it raises prices.

Petz



To: Elmer who wrote (82086)12/6/1999 9:02:00 PM
From: Paul Engel  Respond to of 1573648
 
Elmer - Re: "Well Judge Petz, when did you hand down your ruling? To violate Anti-Trust Law you must have first established that Intel IS a monopoly, and then you could rule they violated the law. Your summary judgement was somehow missed by the press. You must also have established that AMD is not competitive and that will put you at odds with the majority on this thread. "

Excellent analysis.

Petz speaks with forked tongue !

Paul