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David v. Goliath in the Court of Public Opinion

Posted by: Michael Konczal | Jun 11, 2008


David v. Goliath in the Court of Public Opinion

The Federal Trade Commission’s decision to issue subpoenas in its antitrust investigation of Intel for anticompetitive conduct is, in part, the successful result of an intensive strategic communications campaign launched years ago by Intel’s chief U.S. rival, Advanced Micro Devices (AMD).

According to media reports, the FTC investigation will probe accusations that Intel’s pricing policies have been designed to maintain a near-monopoly on the microprocessor market. For years, AMD has waged a global legal and public relations campaign against Intel – hoping to persuade American and foreign regulators that Intel’s pricing practices violate antitrust laws.

AMD’s campaign against Intel is a prime example of how David can take on Goliath (in this case a founding giant of Silicon Valley that controls at least 80 percent of the microprocessor market) with a well-executed, persistent communications program that continues to hammer away with a core message and refuses to give up until someone listens.

No one knows what the result of the investigation will be – and Intel very well may be innocent of the charges leveled against them. Yet, having the FTC agree to launch a formal investigation of its chief competitor is a huge public relations coup for feisty AMD.

For Intel, the need now is to be seen not as a dominant monolithic corporation, but rather as a legitimate competitor that makes a superior product. In an arcane, yet critical, area of law like antitrust, the need to define the issues at stake has never been greater. The company that does it best in the Court of Public Opinion will likely see that victory translate into tangible benefits in the court of law.

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