Quoted – FTC Sues, What’s the Fallout for Intel? – Datamation

Image representing Intel as depicted in CrunchBase
Image via CrunchBase

Quoted – FTC Sues, What’s the Fallout for Intel? – Datamation

The Federal Trade Commission‘s lawsuit against Intel isn’t earning a lot of cheers of support, except maybe from nVidia. In fact, analysts think the suit over claims that the world’s biggest chip maker used its market position to stifle competitors is late and pointless.

The FTC’s slowness isn’t the only problem. It’s also toothless. “If history tells us anything, at the end of the day, most are pretty unsuccessful. Microsoft did not get broken up. IBMBusiness Administration at Cabrini College in Philadelphia. did not get broke up. These big cases are generally unsuccessful,” said Scott Testa, professor of

While nVidia will be all too happy to help the FTC in the case, AMD has settled its legal beef with Intel and just received the $1.25 billion settlement. However, even if it doesn’t want to testify, it has no choice.

“They may be subpoenaed. They may not have a choice. When you get subpoenaed you don’t say ‘Hey it’s settled, we don’t want to talk about it.’ You go,” said Professor Testa.

Testa said Intel can’t be timid about such accusations if it wants to compete, nor should it. “At some point in time you have to compete. I don’t think a company should be penalized for being superior. They are an aggressive company and they shouldn’t run their business wrapped around legal ramifications. They should run their business around business ramifications,” he said.


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Quoted – Ruiz Insider Trading Charge May Be Overblown – Internetnews.com

Image representing AMD as depicted in CrunchBase
Image via CrunchBase

If AMD‘s former CEO is guilty of insider trading, he wasn’t very effective at it.

The secondary rumbles from the Gallen Management hedge fund scandal that shook AMD and the rest of the Silicon Valley this week, included the stunning news that a straight-arrow like Hector Ruiz, the company’s former CEO, would be involved in insider trading.

While Ruiz‘s tenure with AMD (NYSE: AMD) did not end well at all – he fell on his sword after several consecutive quarters of severe losses and the Barcelona processor was more than a year late, harming AMD’s relationship with OEMs –Ruiz had a solid reputation as an honest player, not given to this kind of activity.

While it doesn’t excuse the behavior, it may get Ruiz off the hook with just mud on his face and his good name. “Insider trading you lose money on, I’m not sure how that’s an advantage. Penalties are based on how much you make. If you lose money does that mean the government writes you a check?” joked Rob Enderle, principal analyst with The Enderle Group.

“That’s one way to look at it,” countered Scott Testa, professor of Business Administration at Cabrini College in Philadelphia. But that’s no excuse, he argues. “There was insider info and they tried to use it to their advantage and they lost money, but at the end of the day there’s still manipulation of the markets, so even though they lost money that doesn’t mean what they did wasn’t illegal.”

Enderle believes Ruiz simply spoke out of turn. “He’d been getting heat for not doing anything as CEO, I think he wanted to share this info of what he was doing as CEO,” he said. “My take is I think these execs got kind of excited about what they were doing and shared the info with the wrong people. There’s no evidence [Hector] financially benefited.”

Testa doesn’t buy it, saying most chief executives are pretty cautious in their statements. That said, he and Enderle do agree on one thing: Ruiz is hardly going to fry over this.

“They may say ‘you have a fine and cut us a check and let’s go on our way.’ I don’t see them making him a scapegoat. I could be wrong, but he lost money, is no longer serving [as CEO]. He’s not the golden ticket,” said Testa.


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Quoted – Digging into Intel’s Antitrust Suit – Internetnews.com

The well known  Intel Inside slogan  (1990 2003)
Image via Wikipedia

New York Attorney General Andrew Cuomo caused quite a stir this week with his antitrust suit against Intel, accusing the chip giant of conducting “an illegal campaign to deprive AMD of distribution channels.”

More than a few writers and bloggers chalked it up to politics. Cuomo’s ambitions are no secret: he wishes to be governor of the state just like his father Mario once was. With current governor David Patterson performing abysmally in opinion polls and up for reelection next year, this could be the time for the son of one of New York‘s most famous governors to strike.

Scott Testa, professor of Business Administration at Cabrini College in Philadelphia, adds “My gut is Intel is a very aggressive company and [Cuomo] felt there was an opportunity there, and felt that New York consumers were being wronged, and thought he’d make his move. Intel is very dominant in their market.”

Right now, the testimony is from executives and e-mails dating back as far as 2002. A trial could mean a parade of past and present PC OEM CEOs like Michael Dell, Mark Hurd, Carly Fiorina and Sam Palmisano testifying under oath, which could be either devastating or exculpatory to Intel.

Testa doesn’t believe it was on that level. “I truly believe that this was a mid-level, low-level management issue where you had an aggressive sales person or sales managers. That’s my gut. These rebates are public knowledge. This is between two public companies,” he said.

The latter part of Cuomo’s claim that “Intel launched an illegal campaign to deprive AMD of distribution channels and consumers of product choice and lower prices” could be a tough sell, since no one would argue that CPU prices haven’t come down over the course of the decade even as they advanced and became more powerful.


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Europe to Nail Intel on Antitrust

Image representing Intel as depicted in CrunchBase
Image via CrunchBase


The EU could fine the U.S. chipmaker more than $1.36 billion for allegedly anticompetitive moves against AMD that limited choice in PCs

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