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Intel Extracting Monopoly Profits: AMD Intel Extracting Monopoly Profits: AMD
 
In light of the recent European Commission decision and prior Japan Fair Trade Commission actions, the analysis conducted by AMD's ERS Group asks not whether Intel has engaged in anticompetitive conduct, but how much Intel has gained from the alleged conduct.

EFY News Network  (2177)

Saturday, August 04, 2007:  AMD's economic and financial consulting firm The ERS Group has released the results of a study which says that Intel has extracted monopoly profits from microprocessor sales of more than $60 billion in the period 1996-2006. Dr Michael A. Williams, director, ERS Group, found that consumers and computer manufacturers could gain over $80 billion over the next decade if the microprocessor market were open to competition.
The analysis noted that consumers would save at least $61 billion over the period, with computer manufacturers projected to save another $20 billion, enabling them to increase their investment in R&D; create improved products and greater product variety; and provide additional innovation benefits to computer buyers around the world.

Dr Williams said, “Intel has extracted $60 billion in monopoly profits over the past decade; over the next decade consumers and computer manufacturers would save over $80 billion from a fully competitive market.”

According to Thomas M. McCoy, executive vice president, legal affairs and chief administrative officer, AMD, “Intel’s monopoly profits of $60 billion directly contradict Intel’s claim that its business practices have resulted in lower prices – in fact this study shows that billions of dollars have moved straight from consumers’ pockets to Intel’s monopoly coffers.”

McCoy continued, “That $80 billion translates into an Intel monopoly tax on every consumer who purchases a computer -- that’s a jaw-dropping figure that helps explain why the European Commission brought antitrust charges against Intel – the real harm that its abuse of monopoly power causes competition and consumers.”

EFY News Network


 
 
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