Will Intel Get the Dogpile Treatment?
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Do you know how the kids play a game where someone is ‘it’ and everyone else tries to bring them down, and after getting them on the ground, everyone piles on like some mad football play after a fumble?
That is apparently how it will be for Intel for a while. The judgement against them will bring about all manner of jackals, trying to get a spot on the carcass.
An article on the ZDNet site states that not only will AMD want to get its share, HP, IBM and others will claim they were affected, and all have a hand ready to be filled.
Intel’s $1.44 billion fine imposed by the EU is probably just the beginning of Intel’s European problems. Look for AMD to deliver a civil lawsuit now that the EU decision is in, PC World says. The article quotes British antitrust lawyer Alan Davis, PC World says:
This will open the floodgates for competitors to sue. There was a complainant in this case, AMD, and without question they and other competitors will pursue a case for damages. The fine goes to the European Commission’s coffers, not to the competitors who suffered damage to their businesses because of Intel’s anti-competitive practices. What is likely to happen is that action will be started and a massive settlement will be made.
And it won’t be just AMD and other chipmakers. The OEMs themselves were injured by Intel. Even if they got cheaper prices in the short run, by locking out AMD they lost the benefits of a competitive marketplace. Now AMD is no longer a serious player and Intel can name its price. So, why shouldn’t IBM, Dell and HP sue, as well?
And don’t forget class actions on behalf of consumers.
As to the details of what the suit would look like, one needs only peruse the lawsuit AMD filed against Intel in 2005.
While Intel seems to have enough money to buy Europe, it may not get the chance after the wheels of justice grind for a time.
The tic-tock strategy that everyone has been informed about may not come to a stand still, but the time between beats might get a trifle longer.
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4 Comments
Kitty
May 19th, 2009
at 9:41am
Stifling innovation so companies that lag behind can play catchup.
Way to go EC!
the oracle
May 19th, 2009
at 10:23am
Kitty, do you really think this is any more than an annoyance to Intel?
Even if the tick-tock slows, it won’t be enough to change the way things otherwise might be. AMD is due for a big win soon, and there are rumors of help (once again) from the geniuses at IBM.
Thanks for the comment.
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at 12:03pm
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