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NYT blasts FTC for "going AWOL" on Intel antitrust case

October 29, 2007

Taking an opinionated stance that could well lead to real results at the federal level, the New York Times threw its substantial weight behind chipmaker Advanced Micro Devices Inc. (AMD) in the company’s ongoing war with industry leading rival Intel Corp.

For years, AMD has claimed that Intel has maintained its hold on the majority of microprocessor market share through unethical and illegal methods like coercing customers into not using AMD chips. In a strongly worded editorial published today entitled "F.T.C. goes AWOL," the New York Times said that the U.S. Federal Trade Commission’s (FTC) failure to launch a formal investigation into those allegations of anti-competitive business practices is "bad for America’s consumers and… bad for American business."

The editorial pointed out that the FTC’s decision to conduct only an "informal, cooperative review" of AMD’s claims that Intel uses monopolistic business habits is a markedly different approach from formal probes that have been launched by regulatory authorities in the European Union, Japan and South Korea. "A formal investigation gives the commission power to issue subpoenas and compel testimony from executives," the editorial reads. "Right now, Intel only has to hand over the information it wants to."

The Times went on to claim that the FTC’s actions toward Intel seem unduly influenced by political factors, rather than by a duty to uphold the law and protect consumers. "The FTC’s Republican majority clearly shares the ’starve the regulators and coddle industry’ philosophy that has driven the Bush administration for seven years," the Times said.

Without a doubt, the New York Times’ editorial page has high visibility in both the business and political realms; the fact that the paper’s editors chose to make a public statement on the Intel/AMD war shows the chip industry’s influence goes far beyond Silicon Valley.  Whether or not it will have a tangible effect on the case remains to be seen.  How, if at all, does the NYT’s stance affect your opinion on the issue?

–Colleen Taylor, Contributing Editor

Posted by Suzanne Deffree on October 29, 2007 | Comments (24)

February 22, 2010
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
hotel tuerkei commented:

Confidence Finance,finally word competition western anyone share plus could conduct spread argument early breath far discuss code enterprise according gather everyone major additional will car expression build half organization environment we physical what early happy victory arm settlement park enemy trouble recently whose implication onto mark down promise bedroom corner objective concern open reduce relationship why open project several coffee sound very stone everybody next huge phase simply much key major tree candidate push reaction equally media opinion surface exercise here off face empty tooth claim contact


November 5, 2008
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
Steve Austin commented:

Opinions are not facts. Namecalling is not debate. And I, for one, regard some Intel products "innovative and useful".


November 8, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
John commented:

at 11/1/2007 2:14:27 PM, mike said: So let me get this straight. Major investigations are launched around the world into Intel's dirty dealings, yet in the US, nothing but an "informal cooperative review", and people out there think there's nothing wrong with this situation? If Intel has nothing to hide, it should, itself, push for the formal review and clear its name once and for all...but wait, how DO you clean slime balls? The only "slime ball" here is Mike. The guy who wrote this comment. Name calling is very childish, Mike. I do not care much for Intel either But the guys who work there are not "slime balls".


November 8, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
John commented:

at 10/30/2007 1:30:44 PM, fair guy said: We know Intel has dominant market in personal computer chips and has been taken consumer''s choice away by using their power and unfair business practice. US government needs to listen to the decisions from all over the world and should move forward to decision to make fair competition like other countries did. NO, we do not know this. No one can possibley know this except Intel at this point. "WE KNOW... is a stupid commen't.


November 8, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
John commented:

Innovation (see 2nd posting) is an idiot too. He/She cannot possibly have any knowledge of what he/she is saying. Why even say it?


November 8, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
John commented:

How are we readers to know if Intel is coercing computer makers to not use AMD chips? I like AMD and DO NOT like Intel, but we consumers have NO WAY of knowing if this is happening. This type of question is pretty stupid.


November 4, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
intel me? commented:

why change my product to something that consumers find innovative and useful when i can just monopolise the market? If intel continues its way, consumers will just be forced to buy upgraded old products at whatever cost they stamp on the price tag. AMD have come a long way to prove that it always changes for the better in terms of quality, the benchmarks by 3rd parties shows.


November 3, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
mikie commented:

based on your comment below, yes you are right, it's called the MONOPOLY LEAGUE...(NYT and AMD have the right to their opinions; It may be that Intel is simply in a different league !! )


November 2, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
smarter_choice commented:

smart1 (see first comment) is an idiot.


November 2, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
common sense commented:

It's interesting how easy it is for the truth to be twisted. The anti-trust laws in each of the other countries in which Intel has been investigated are very different than the anti-trust laws here in the United States, and this has nothing to do with any "corruptness going on behind the scenes" Our laws in the U.S. are actually more pro-competition. AMD and Intel are involved in a lawsuit in the United States as we speak. If Intel is in any way infringing any laws, AMD will have its day in court to prove that. Our U.S. taxpayers don't need to pay to have our FTC investigate a company already under obligation to appear in court.


November 2, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
Jassy commented:

NYT and AMD have the right to their opinions; It may be that Intel is simply in a different league !!


November 2, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
Bob commented:

I think it's great the NYT went on with such an opinionated editorial. The Europe, Japan and S. Korea has already filed complaints... yet, the USA's corrupt political systems has people paid off enough to allow the FTC to sit on their butts and turn the other way. It's a sad reality of the US, and the FTC... and the corruptness going on behind the scenes politically.


November 1, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
mike commented:

So let me get this straight. Major investigations are launched around the world into Intel's dirty dealings, yet in the US, nothing but an "informal cooperative review", and people out there think there's nothing wrong with this situation? If Intel has nothing to hide, it should, itself, push for the formal review and clear its name once and for all...but wait, how DO you clean slime balls?


October 31, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
smart1isnot sosmart commented:

Are you serious? Your answer is "since when is it a crime to "convince" your customer to use your product instead of someon else's"? Do you know what a monopoly is? Do you know what legal versus illegal business practices are? This is not about a plant going up in NY. Have you seen what other country's responses have been to this. Do more research or use some common sense before you make an uneducated answer to a very complex situation.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
fair guy commented:

We know Intel has dominant market in personal computer chips and has been taken consumer''s choice away by using their power and unfair business practice. US government needs to listen to the decisions from all over the world and should move forward to decision to make fair competition like other countries did.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
Jim Jarvis commented:

Intel may be the 800lb gorilla, and they may be bullies because of that mass. But there is no other organization on the planet which can decide to invest $4Bn in a fab...and do it with entrepreneurial risk-taking. The problem is that investment capital is more mobile than governments.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
Dan Cobb commented:

How absurd. Intel's margins have always been in the 50% range, yet Intel is being accused of selling below cost? How could Intel possibly sell meaningful quantity below cost and still maintain such margins? When AMD made a better product, they swallowed up market share. For smaller companies, the processor business is difficult to compete in, when each fab plant costs billions to build. Intel invented this business. Some people don't like success.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
focus on the merits commented:

Intel wants you to focus on the notion that Sen. Schumer from NY is pushing the FTC for a formal investigation of Intel because AMD has indicated its desire to build its next fab in New York. Don't take that bait - focus on the merits. THREE independent competition authorities have ruled that Intel illegally abused its monopoly power (Europe, Japan and S. Korea) and they arrived at their conclusions based on evidence they seized from Intel and


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
Cecil de Gallo commented:

Something reeks at the FTC when they refuse to investigate a behemoth corporation with 90% global market share who has run afoul in the past and is currently being investigated by a host of other countries for very specific anti-competitive practices. If that doesn't deserve an FTC investigation, what does it take? There's obviously more to this story I hope the NYT reveals.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
grad student in CS commented:

Intel's Craig Barret and Paul Oetellini have been know for a long time to have contributed large sums into republican campaign funds; of course I'm not surprised at FTC's decision, which runs counter to every international counterpart. And it would also surprise no one if the FTC decision was made through intense pressure from higher-ups, who have close ties to Intel.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
paly commented:

Intel obviously knows how to deal under the table. So what? That's how business gets done around here! AMD only wishes it could be as sly as Intel.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
james chung commented:

Shame on FTC and INTEL. I personally learned my lesson with $2,600.00 and realized that this huge cheating games do exist in our system and business. There is not much, or nothing we can do about it. They sell poor equipment with cheating advertisement, and draging on practice to drag you through the pricy warranty. INTEL, shame on you. FTC, you should sent to Iraq with Bush.


October 30, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
innovationfan commented:

This is just further proof that Intel's "might makes right". The FTC's decision was no surprise. Intel has a cash pile bigger than all of AMD's assets. Intel used that money and power to maintain its market share, and now it has purchased the US government. No surprise.


October 29, 2007
In response to: NYT blasts FTC for "going AWOL" on Intel antitrust case
smart1 commented:

More crap from New York because AMD has committed to building a fab there (which will not be built given AMD's financial situation). Since when is it a crime to try to convince a customer to use your product instead of someone else's. This is a joke.... These people may be risking a class action lawsuit from Intel shareholders....

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