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 Wednesday, June 29, 2005
Advanced Micro Devices, which filed an antitrust lawsuit against Intel on Tuesday, envisions a day when Intel no longer dominates the PC market.

AMD's suit, filed in Delaware, alleges that its larger rival wielded its financial and market clout illegally in order to artificially limit AMD's market share and maintain its own PC processor monopoly. Advanced Micro Devices Inc. also seeks restitution, but declined to offer specifics. Intel Corp., in a statement, denied any wrongdoing.

The changes, AMD believes, would result in far more AMD-based PCs and open opportunities, such as a possible AMD-Dell Inc. deal. AMD also would be able to use its newfound agility to compete on price and technical terms to earn more wins in business-oriented notebooks, desktops and servers from large, brand-name companies, AMD executives said. Right now, of the largest PC makers in the United States, only Hewlett-Packard Co. offers AMD-based systems to businesses. Dell, Lenovo Group Ltd. and even Gateway Inc. use only Intel in their business systems.

"We deserve to have a significantly larger share of the market than new already have. The only thing that's keeping us from achieving those numbers are the illegal, monopolistic actions of our competitor," Hector Ruiz, AMD's CEO, said in a teleconference with analysts and reporters Tuesday afternoon.

AMD bears the burden of proof, however. A company must use its dominant position to maintain a monopoly before it violates the law. Thus AMD must first prove that Intel has a monopoly, a slam dunk in the opinion of AMD executives, as well as show that it abused that position.

"AMD needs to show that Intel has effectively impaired competition in the PC market. It's not enough to show that Intel is just a behemoth and a monopolist. AMD has to prove that Intel's practices have resulted in less competition or higher prices," said Hillard Sterling, an antitrust lawyer at Freeborn & Peters LLP, in Chicago.

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