Almost everyone is unconsciously aware of a computer with an Intel chip. The American chip manufacture has a market share of approximately 80 percent, the world largest chip maker. A lot has happened in order to attain this position, but did Intel achieve this position in a fair way?
According to the article from the New York Times, it is known that in the USA, the lawsuit has started an investigation against Intel regarding its unfair market position and possible corruption. According to New York’s attorney general lawsuit Mr. Andrew Cuomo: Intel, the world’s largest chip maker, has for years used large rebates and co-marketing arrangements to talk Dell and other manufacturers into sticking with its products rather than increasing their business with A.M.D., a much smaller chip maker.
As the supplier of about 80 percent of the central chips that power PCs and servers, Intel had monopoly power, which it abused, according to Mr. Cuomo. “Intel has used illegal threats, coercion, fines and bullying to preserve its stranglehold on the market.” Thus, Intel’s way of handling business is not only unfair for its potential rivals, but also damaging for the average consumer. The consumer’s better products and low prices are taken away through the imperfect competition caused by the monopoly power of Intel.
Intel’s way of handling business has broken some moral principles: First, it drives away competitors in the market because it handles with computer manufactures by offering them (illegal) discounts, which can also be seen as private corruption. Second, it is not fair for consumers because computer manufactures chose for Intel chips, it is possible that they do not receive the best balance in quality compared to price. Thus consumers have paid a high price for years. Third, Intel has caused damage in the whole society because competition and innovation of chips is driven away.
In my opinion, the above mentioned points caused by Intel have caused damage in the society and in the market. Intel had disturbed the efficiency of the market and has broken some moral principles, thus Intel is corrupt.
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1 comment:
I do agree with that Intel’s way of handling business has broken some moral principles, as mentioned in the principle comment. However, the acts of the company also violate the law, specifically, antitrust law. As the lawsuit is involved in this case. Why we came to the conclusion that the company violate the law? There are several points which we could focus on to analyze this case. The first argument is its unfair market competition and corruption situations.The specific conducts of Intel are to control the market by corrupting their big copartners such as Dell and other manufacturers, the illegal threats and other unfair competitions within chip market. The punishment to violation of law is also obvious - the reputation of the company go worse and worse.
Anyway these illegal conducts should be restrained by legal institute.
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Name:L.Zhang
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