AMD sees Intel bias in tenders, to move Competition Commission of India

[Pathik]

NEW DELHI: It’s not summer yet, but corporate wars in India are generating plenty of heat. This time around, it’s not the traditional cola wars but chip wars, between the $6-billion AMD and $38-billion Intel.

The global battle for market share between the world’s largest chipmakers, AMD and Intel, has reached India’s doorstep. AMD, the world’s second largest chip maker, is planning to move the Competition Commission of India (CCI) to make a representation on monopoly trade practices in the fast-growing microprocessor market, specifically in the government vertical.

Chipmaker AMD’s contention is a clause in most Central and state government tenders that ask bidders to bid with machines having only Intel microprocessors. For example, the Lok Sabha tender for about 200 PCs, 105 laptops and 80 palmtops last year required a bid from OEMs on only Intel-based processors.

“We plan to represent our anti-trust case in the Competition Commission of India. What we want from the government is fair and open competition and a chance to participate in government tenders. Currently, choice for government agencies to opt for any other chip technology just does not exist in 90% of the tenders. AMD has aggressively taken up this issue with the government,” says AMD India MD Alok Ohrie.

AMD is unhappy as it is being left out of most tenders and rival Intel is gaining market share without competition. Intel has a majority (almost all) share in the government vertical, which accounts for 15-16% of the total sales in India, according to IDC. AMD, however, has a negligible market share in the government vertical. Overall, Intel has a market share of about 79.6% on all products in India as compared to about 21.4% for AMD.

In some states, AMD has succeeded as well. For example, in Karnataka, the state government removed the ‘Intel-based system’ clause in tenders. But, in many others like Shipping Corporation of India and Central Bank tenders issued last year, the clause caused non participation, which irked AMD.

Intel, however, disagrees with AMD’s claims. “Intel always believes in competing fairly. We believe in a level playing ground for everyone without exceptions. Whilst an integral part of our value of customer orientation includes the goal to be vendor of choice, it’s equally important for us to conduct business with uncompromising integrity and professionalism,” an Intel spokesperson told ET.



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[narangz]

I fully support AMD.

 

[MetalheadGautham]

I am on AMD's side now. But unless they decide to release OSS Drivers that are better than Intel's, they are not as much worth concidering. Still, AMD does deserve a chance.

 

[rosemolr]

amd suxxxxxxxxx..Intel Rockssssss

 

[narangz]

^^Intel won't rock if there's no competition. Competition rocks.

 

[Cyrus_the_virus]

Intel is the new Microsoft. It's trying to buy out AMD's customer by using cheap tactics.

There was another recent incident:

EU raids Intel's Munich offices, also targets retailers

The EU's antitrust investigation against Intel took another step forward today as European Commission (EC) officials conducted surprise raids on the company's Munich offices. The EU, however, didn't stop there; German electronics retailer Media Markt-Saturn was also raided, as was British retailer DSG International Plc. Intel is currently preparing hearing next month in Brussels on the allegation that it abused its dominant position in the market in ways that illegally harmed its competitor, AMD.

"Commission officials carried out unannounced inspections at the premises of a manufacturer of central processing units and a number of personal computer retailers," a Commission spokesperson said in a statement.

Intel acknowledged that a raid did take place, as did the two other companies in question, but there's no information as of yet on what material was or was not taken. This isn't the first time that Media Markt-Saturn has been directly involved in an Intel antitrust action—the company's close relationship with Intel is already under investigation. Like the Dell of long ago early 2006, Media Markt-Saturn currently sells no AMD-based equipment. This, in and of itself, is not a crime—but AMD's allegations paint Media Markt-Saturn as the recipient of any number of sweetheart deals and/or incentive packages in exchange for exclusively carrying Intel products.

The raids are just another reminder (if Intel needed it) of just how willing the EU is to play hardball when it comes to international antitrust investigations. Thus far, Intel's public response to the EU's allegations have been limited, though the company does maintain that any and all of its actions were "lawful, procompetitive, and beneficial to consumers." AMD, of course, would characterize Intel's behavior over the past eight years or so quite differently.

The EC's decision won't directly impact AMD's antitrust complaint against Intel in the United States, but it could become the third entity (after South Korea and Japan) to find evidence of anticompetitive behavior on the part of the Santa Clara chipmaker. Such findings would have no direct legal impact on AMD's US-based case against Intel, but could bolster AMD's fortunes down the road.

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Monopolies get their arses kicked in the EU if they play dirty. Unforunately, not every other government is so keen to protect the consurmer!

 

[vaithy]

Since I am fairly acquinted with the GOvt tender process, I want to clarify the some points here.. mostly the tender process are handled by the technicaly incompetent officers and tender documents drafted by them will reflect on this.. if AMD instead of approching Competion commission approach the SC it may get more fastest releif as it sought now..
l
one of the rules mentioned in the technicall manual is
"it should be on X86 based machines" Many Officers it means intel, so they drafted the documents,'Pentium-IV based machines.. When i show one of the shootout test conducted by PCquest Magazine, about how AMD's Athlon XP batterred Pentium-IV in various test, as well as price level advantage.. but the officers simply brush aside objection, since I am not eligible to raise objection on technical ground,(as a non-technical officer(Accounts)) so they went on purchase more than 500 PCs at the public expenses,( clearly for the same level of machines the price different is cool Rs.8000/ per PC..
If Some audit based on computer taken for Govt Department in India , then it will run to billions...Since such technical defects are not noticed in the CAG reports, neither the aggrieved company went on court to get justice..
same is on M$ contracts.Luckily M$ has no rival here.. so it escaped so far.. if AMD can Win then Ofcourse Redhat and Suse can make same claims.. some of PSUs have selected M$ when its Enterprise applications could run on Unix/Linux platform, by paying kings ransom...

 

[W i d e S c r e e N]

we need competition

 

[saqib_khan]

Yes, its the competition only that brings in good products.

 

[victor_rambo]

Agree with Waithy,
Our Govt. does not have technically competent seniors. Most of our Govt. websites are so shoddy that any n00b with an illegal copy of Microsoft Frontpage and make it up. Tech competence can be achieved only when these grey-hair will allow younger generation to take up that part of the responsibility.

 

[Voldy]

Indian govt. is so dumb and fool that doesnt know even a pinch abt technology or chip manufactured companies.
i wonder how many Politicians would know the spelling of technology ?

 

[ray|raven]

@rohan_shenoy
I agree with the point,but that might not happen.
The poilitics these days have become like kingdoms in history.
Father grows old, son takes over with the charisma of the father,
And so it goes on.
And even if the politicians knew abt technology and all,
they dont even care.All they care is the amount that falls in their hands.
The contract falls to some guy whos got recommendation,
Like the Minister's PA's Cousin's Uncles' Friend.

 

[din]

@vaithy

Another nice post. Really good and I fully agree with you.

Years back,

Operating System = Windows

Computer = Branded

PC Processor = Intel

There are people who still live in those days. All PCs in my office are AMD (was using Intel Pentium before) and I am pretty happy about the working and perfomance, but I see people never heard of anything other than Intel even in cities like Cochin !!

 

[indranilmaulik]

Intel rocks.

i will always use and suggest intel over amd.

my entire office, my notebook, my home pc, my friends pc and note book all have intel.

 

[ashok jain]

i am with AMD , i like the AMD technology , but lake of product and supported product pull the buyers mind.

may be in future we see rising nos of AMD in house segment.

Till today Indian Buyer think AMD is for Gamer only.

I am Planing for new AMD system , NO NO to Intel.

 

[vaithy]

Intel rocks.

i will always use and suggest intel over amd.

my entire office, my notebook, my home pc, my friends pc and note book all have intel.

We are speaking about the past discrimination of AMD in India, when it battered Pentium-IV with its Athlon XP series in Indian Government purchases..
no doubt intel is riding a higher wave today with its Core2 due series.. What the subject is, the two Company products should be given equal chances in Govt purchases.. even today many of Govt offices function is on only office applications and some DATABASE server running its application.. for this simple sempron or celeron may be enough so it may save billions of Govt fund.. which otherwise useful to spread this same fund to pay the Computer Teachers , instructors, in Govt colleges and schools all over India..By discriminating one company, Intel based machines have been purchaed even two fold over the market prices in many places..
Absence of competition means Corruption..
this is the point here..

vaithy

 

[nvidia]

I've always supported AMD.
Intel may rock as of now, but AMD is gonna kick its a$$.

 

[MetalheadGautham]

the government is full of sh!t heads and people who think Windows is a hardware. Our bad luck

 

[NucleusKore]

I'm for competition, and fair trade practices, and in this case, I'm on AMD's side.

*img217.imageshack.us/img217/9472/pubthefuture2cisopen466cr4.png

 

[nvidia]

Absence of competition means Corruption..
this is the point here..
vaithy

Fully agree with you here.
We call ourselves the biggest democracy, but is it possible for us to go and give advice to the govt that that a particular procy or something isnt good?
Are they going to pay any attention to you even if you say?