Intel vs AMD: Ethical Issues !!

The recent update "EU Raids Intel's Office in Germany" from Wall Street Journal was very thought provoking. I further got to know from other press releases that Intel, the world's biggest chip maker, is already facing formal EU charges of monopoly abuse for below-cost customer rebates and pricing. It has been using several strategies to increase its market share in comparison to AMD (Advanced Micro Devices Inc.). Now the question is to what extent is this competitive? There is no doubt that the competition in today’s era knows no national or regional bounds. Each company is putting its best possible strategies into practice to supercede the next stronger player in that industry. In my opinion there is no harm in this cut throat competition as long as the end user or the customer is benefited from it. Here, in case of Intel vs. AMD rivalry, Intel used predatory/below-cost pricing to push AMD out of the market. But eventually it is the customer who would end up buying a monopolized product with the least choice of variety. Would creativity and innovation continue to thrive in such a monopolistic industry? I think that the extent of research and development would also be decided by that one major player of the industry.

When it comes to ethics, I strongly think that the multinationals should take care of the host country’s norms. So “Glocalization” (Globalize plus Localize) seems to be a better approach than “Globalization”. In this case for Intel, the company undertook certain steps that did not fall inside the limitations of European Union regulations. What is ethical and correct from U.S standpoint might not be appreciated in Europe! This new release was really interesting as it brings into light the importance of commercial and cultural norms across the borders.