Intel “Rebates” and Other Ways It “Helped” Customers

CASE TIMELINE
• Intel Corp V AMD (Advanced
Micro Devices)
• Athlon (Cheaper and efficiently
fit w x86 technology sold more
than itanium (faster and more
powerful but non fitter with x86
technology) but sudden decline
on 2004/2005
• In 2006, AMD sued Intel for
conducting unethical tactics but
unsecceed until 2009 due to
complication their claim
Although unsetled, AMD Sues raises
suspicion among local and foreign trade
government..
• Europen Union : Japan and South
Korea’s fair trade commision (FTC)
FTC investigated and find out that :
• AMD’s claim are true
• Athlon has been hacked by Intel’s
Compiler and software
2009

2005 - 2009 2018

AMD Claims are (the unethical tactics):
• Intel gave so-called “rebates” to • The trade governments
computer makers in exchange for sued Intel for violating
their exclusively royalty their antitrust law
• Threat of termination of any • In 2009, AMD Sues
microprocessors from Intel settled with $1.25 billiion
Intel rebuttal : by Intel Corp
• Intel’s rebates are Intel’s reward for
their loyal customers
• AMD’s Athlon is not that good of
microprocessors
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 QUESTION

In your judgment is Intel a “monopoly”? Did

Intel use monopoly-like power; in other
1 words, did Intel achieve its objectives 2 In your judgment, were Intel’s rebates
by relying on power that it had due to its ethical or unethical? Explain your answer.
control of a large portion of the market?
Explain your answer.

• We believe Intel is considered a • Unethical

monopoly even though they do not • Intel’s rebates were unethical when Intel use
control all but the majority of the rebates as reward for companies thay boycott
market. AMD Processors. All the loses of the
• Pure monopoly is a market in which a companies will be paid by using rebates. Intel
single firm is the only seller in the use rebates as a measure for the deeds Intel
market and which new sellers are does. Intel’s violate utilitarianism
barred from entering.
• Intel is considered a monopoly even
though they do not control all but
majority of market, 70% of the market,
Intel corp. Is the world’s largest
manufactured of personal computer

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 QUESTION
Was it unethical for Intel to use its compiler
3 and its libraries of software code in the way it
did, or is this permissible for companies in
free market economy? Explain your answer
• The compilers and library have been
designed to trip up the programs when
runs at the AMD processors
• CPU Dispatcher detects the vendor
string before works with maximum
efficiently
• Affects the performance even if the fully
compatible CPU
• Deprived of consumers right
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4 Where Intel’s rebate unethical? Explain why
or why not?
Intel’s Rebates is unethical
• Rebates that had been given by Intel’s was
strategy to exclude AMD from
microprocessors market
• Europen Union said that Intel’s rebate was
anti-competitive
• Intel’s rebate may assume as loyal discount in
order to boycotting AMD’s product
• Reduce consumer choice
4
 QUESTION

In your view, did Intel violate either of the two

5 of sections of sherman antitrust act? explain

Yes • Forcing major customer into Intel exclusive

• Sherman antitrust Act – states that
every contract, combination in the form
of trust or otherwise or conspiracy in
restraint of trait or commerce among
the several states or which foreign
nations is declared to be illegal
• Sherman antitrust Act – further
prohibits monopolization or attempt at
monopilizing any aspects of interstate
trade or commerce and make the act a
felony
deals in return for outright cash payments,
discriminatory pricing or marketing subsidies
conditioned on the exclusion of AMD
• Forcing other major customer into partial
exclusively agreement by conditioning
rebates, allowances and market development
funds on customers agreement to severaly
limit or forego entirily purchase from AMD

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THANK YOU