Advanced Micro Devices Inc (AMD)

[spokeshave]

Windsock: Re: Robinson-Patman Act (note the spelling)

The Robinson-Patman Act permits price differentials that "make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities". One could effectively argue that Dell-like quantities are much less expensive to produce than much smaller quantities. Additionally, as kpf was trying to point out, this same clause allows for discounts that make allowance for the cost of sales. Every time that a Dell commercial shows the Intel logo, or plays the Intel ditty, they have effectively reduced Intel's cost of advertising, and therefore Dell is entitled to a discount. This *is* perfectly legal and allowable under RBA.

Interestingly, it actually works in Intel's favor if a tier one maker also offers an AMD line. Intel can offer discounts that are compliant with RBA in making a good-faith effort to remain competitive with a company offering a similar product.

RBA is riddles with loopholes, and there can be no doubt that Intel offers Dell preferential pricing that is perfectly legal under RBA.