Investigation and a pending class action lawsuit against Intel. The class action lawsuit claims the microprocessor giant unlawfully maintains a monopoly by engaging in a relentless, worldwide campaign to coerce customers to refrain from dealing with Advanced Micro Devices, Inc. (AMD), another microprocessor manufacturer. The specific allegations against Intel include:
(1) Forcing major customers into exclusive or near-exclusive deals with Intel;
(2) Conditioning rebates, allowances, and market development funding on customers' agreements to severely limit purchases from AMD;
(3) Establishing a system of discriminatory, retroactive, first-dollar rebates triggered by purchases at such high levels that in effect deny customers the freedom to purchase any significant volume of processors from AMD;
(4) Threatening retaliation against customers introducing AMD computer platforms;
(5) Establishing and enforcing quotas among key retailers effectively requiring them to stock overwhelmingly, if not exclusively, Intel-powered computers, thereby limiting consumer choice;
(6) Forcing PC makers and technology partner to boycott AMD product launches and promotions;
(7) Abusing its market power by forcing technical standards and products on the industry which have as their central purpose the handicapping of AMD in the marketplace; and
(8) The complaint alleges that Intel's unlawful conduct has caused and will continue to cause substantial harm to competition in domestic, import, and export trade.
According to the suit, consumers ultimately foot the bill for Intel's actions in the form of inflated PC prices and the loss of freedom to purchase computer products that best fit their needs. According to the complaint, in 2005 the Japanese government's Fair Trade Commission recognized these competitive harms and recommended that Intel be sanctioned for its exclusionary misconduct toward AMD. Intel chose not to contest the charges.
The class action includes all United States residents who purchased a microprocessor in the United States indirectly from Intel from June 29, 2001 through the present.
Name (Stock Symbol)
Intel Corporation (INTC)
Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide.
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.