By Kevin Bogardus - 11/18/09 02:45 PM EST
In a statement on
Nov. 12, Ed Black, president and CEO of the Computer and Communications
Industry Association, applauded Intel for reaching an agreement
with AMD. His trade association has sponsored a print and Web ad
campaign decrying Intel since May after the European Union fined the
Santa Clara, Calif.-based company $1.45 billion for its alleged illegal
business practices. Intel is appealing that decision.
intend to carefully review Intel’s follow-on actions, the reactions of
other companies and the various enforcement agencies involved,” Black
told The Hill regarding his trade group’s ad campaign.
campaign was already put on hold, though, because New York State
Attorney General Andrew Cuomo (D) sued Intel earlier this month over
allegedly paying computer manufacturers not to use its rivals’ chips.
is a member company of CCIA; Intel is not. Black said not just AMD but
other companies within and outside of his association were worried by
Intel’s business practices.
“A number of our members and
companies in the industry have had great concern about Intel’s actions,
and their reaction to the settlement needs to be fully understood,”
CCIA has a history of confronting tech
companies over alleged anti-competitive behavior. The trade group
jousted with Microsoft when the software company was dealing with the
Justice Department’s antitrust division in the late 1990s. In addition,
the trade association called out IBM for its market domination of
mainframe computers in a report released earlier this month regarding
the Social Security Administration’s aging IT infrastructure.
settlement could help Intel in resolving other outstanding legal issues
confronting the company. Chuck Malloy, a company spokesman, said Intel
executives plan to meet this week with the FTC, which has opened an
investigation into the company, to discuss its settlement with AMD.
addition, Intel believes the agreement will give it impetus to end more
than 80 class-action lawsuits filed in Delaware against the company
that were based on AMD’s complaints. Intel, however, plans to litigate
the antitrust suit brought by Cuomo in New York.
for its antitrust battles, the chipmaker upped its lobbying in
Washington this year. Intel has spent close to $2.9 million on lobbying
in 2009 so far, already beating its 2008 total by roughly $700,000,
according to lobbying disclosure records.
Street roster has included powerful and well-connected firms, such as
American Continental Group and Cassidy & Associates. It also hired
Peter Cleveland, former chief of staff to Sen. Dianne Feinstein
(D-Calif.), after the November 2008 elections to run its in-house
Overall, Intel has 10 outside lobbying
groups working for it this year, including five firms, like Franklin
Square Group and Capitol Hill Strategies, that signed up for the
company in this year alone.
AMD is no slouch either on the
lobbying front, though it is not quite in the same league as its rival.
The company could outpace its 2008 lobbying total of $650,000, spending
close to $600,000 thus far this year. Along with its own lobbyists, AMD
has several outside firms, including the Glover Park Group, Navigators
Global and Potomac Counsel working for it.
Those on K Street outside of the battle between Intel and AMD said they believe the billion-dollar settlement will end the dispute. But others suggested it was only a stalemate until the companies run afoul of each other again.