AMD accuses Dixons of colluding with Intel on chips

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Hardware

Dixons, the electrical goods retailer headed by John Clare, has been dragged into the vicious legal dispute between the rival computer chip makers, AMD and Intel.

Last week AMD sumbitted a 48-page complaint against Intel to the US District Court in Delaware. It alleges that Intel, the world's leading chip maker, engages in anti-competitive and monopolistic practices.

In its complaint, AMD alleges that Dixons has been discriminating against it in return for payments from Intel.

AMD states: "In the United Kingdom, Intel has locked up substantially all of the business of DSG (Dixon Services Group), operator of three major chains including Dixons and PC World, that collectively account for two thirds of the UK PC market. In exchange for Intel payments, DSG has agreed to keep AMD's share of its business below 10 per cent."

Dixons is just one of many computer retailers that AMD states has been subject to financial "coercion" from Intel.

But yesterday Dixons hit back against AMD. In a written statement, the company said: "The specific reference to the Dixons Group in the AMD suit is factually incorrect and we are correcting misinformation in the filing. PC World never discusses one supplier's business with another."

It added: "This is a matter between AMD and Intel. In the interest of providing our customers with the best price, widest range and great service, we have long-standing, commercial relationships with both companies, and others, which are of course fully compliant with all relevant regulations and our own ethical sourcing policy."

AMD's action against Intel, which analysts believe has the potential to transform the global computer processor market, comes as the European Commission confirmed it is working on its own anti-trust case against the world's biggest chip maker.

Brussels said yesterday: "We are pursuing our investigation into possible violations of EU competition rules by Intel."

Source.