The European Union on Monday published e-mail excerpts (see the related article or full 500-page report) aiming to back up its claims that Intel pressured chip buyers into choosing microprocessors from Intel over smaller rival Advanced Micro Devices. Here are some excerpts, as stated by the Commission:
In this excerpt from a February 26, 2004 email, a Dell executive describes the consequences of Dell switching part of its supply requirements to AMD to his superiors. “MCP” refers to rebates Intel gives to Dell.
[Intel senior executives] are prepared for [all-out war] if Dell joins the AMD exodus. We get ZERO MCP for at least one quarter while Intel ‘investigates the details’ (…) We’ll also have to bite and scratch to even hold 50%, including a commitment to NOT ship in Corporate. If we go in Opti [Optiplex corporate desktop line], they cut it to <20% and use the added MCP to compete against us" and "It looks 100% certain that Intel will take MCP to ZERO for at least one quarter while they 'review all of the numbers and implications.' (...) Appears likely that Intel would take MCP to <25% of current levels UNLESS we agree up front not to ship into [Product line]. If we do that, we're in 'détente' mode and can keep MPC [sic] at 50%. However, we don't meet [AMD Senior Executive]'s T&Cs [Terms and Conditions]. So, I would plan on MCP at <20% levels if we execute AMD across [Product line]and [Product line] as AMD wants."289
Here are emails written by executives at another PC maker, Lenovo. June 27, 2006 email:
“[Two Lenovo Executives] had a dinner with [an Intel executive] tonight (…). When we asked Intel what level of support we will get on NB in next quarter, [he] told us (…) the deal is base[d] [sic] on our assumption to not launch AMD NB platform. (…) Intel deal will not allow us to launch AMD.”
June 28, 2006 email:
“As you know I have been negotiating a special deal with Intel. The net is that Intel has made us a very attractive offer that we will end up taking. Our part of this deal is that we will award all business of shipments for the rest of this calendar year to Intel. In exchange, Intel will give us a special deal for both [geographical area] and [geographical area]. The deal is worth millions of dollars.”
On September 9, 2003, an AMD executive reported a discussion he had had with an Acer senior executive.
“[Acer Senior Executive]] indicated to me that Acer participation was compromised by the extremely specific request from Intel to avoid any public support to AMD64 and Athlon 64 [chip]. He volunteered to tell me that this is the first time he has ever seen [Intel Senior Executive] PERSONALLY intervene in such a matter (…). The threat to Acer was described to me as not completely defined yet but could be as drastic as 100% suppression of their Intel marketing funds. [Acer Senior Executive] indicated that with 85% of their business coming from Intel, the damage to Acer would be significant. Thus, although he reassured me of his commitment to the relationship, and the long term success of AMD64, he told me that Acer is reviewing what compromise they can reach to still support us yet satisfy Intel’s ultimatum.