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Oct 22, 2007

AMD’s got a chip on its shoulder

Despite allegations of cheating from main competitor AMD, the Federal Trade Commission will not be investigating microprocessor maker Intel for its methods of dominating the market. But AMD won't give up there. Jeremy Hobson reports.

by Jeremy Hobson

TEXT OF STORY

Scott Jagow: Intel is kind of like the New England Patriots of microprocessors: Intel is dominating its industry, but it also faces allegations of cheating in several countries.

Still, word this morning is that the Federal Trade Commission will not open a formal investigation. More now from Jeremy Hobson.

Jeremy Hobson: Intel controls as much as 90 percent of the microprocessor market. It’s chief competition, Advanced Micro Devices or AMD, has accused Intel of antitrust violations. Specifically, offering discounts to computer makers for not using AMD microprocessors.

That conduct has gotten Intel into trouble abroad. The company has faced scrutiny from the European Commission, South Korea and Japan.

No comment this morning from Intel, though the company has said it believes the marketplace is very competitive and is working as it should.

AMD had hoped for an investigation by the FTC, but does have other avenues to pursue. It’s filed an antitrust lawsuit against Intel. That trial is scheduled to begin in April of 2009.

In Washington, I’m Jeremy Hobson for Marketplace.

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