A report from HardOCP's Kyle Bennet aims to shake NVIDIA's foundations, with allegations of anti-competitive business practices under its new GeForce Partner Program (GPP). In his report, which started with an AMD approach that pushed him to look a little closer into GPP, Bennet says that he has found evidence that NVIDIA's new program aims to push partners towards shunning products from other hardware manufacturers - mainly AMD, with a shoot across the bow for Intel.
After following the breadcrumb trail and speaking with NVIDIA AIBs and OEM partners ("The ones that did speak to us have done so anonymously, in fear of losing their jobs, or having retribution placed upon them or their companies by NVIDIA," Bennett says), the picture is painted of an industry behemoth that aims to abuse its currently dominant market position. NVIDIA controls around 70% of the discrete GPU market share, and its industrious size is apparently being put to use to outmuscle its competitors' offerings by, essentially, putting partners between the proverbial rock and a hard place. According to Bennet, industry players unanimously brought about three consequences from Nvidia's GPP, saying that "They think that it has terms that are likely illegal; GPP is likely going to tremendously hurt consumers' choices; It will disrupt business with the companies that they are currently doing business with, namely AMD and Intel."
The crux of the issue seems to be in that NVIDIA,
while publicly touting transparency, is hiding some not so transparent clauses from the public's view. Namely, the fact that in order to become a part of NVIDIA's GPP program, partners must have its "Gaming Brand Aligned Exclusively With GeForce." Bennet says that he has read NVIDIA papers, and these very words, in internal documents meant for NVIDIA's partners only; however, none of these have been made available as of time of writing, though that may be an effort to protect sources.
But what does this "exclusivity" mean? That partners would have to forego products from other brands (case in point, AMD) in order to be granted the GeForce partner status. And what do companies who achieve GPP status receive? Well, enough that it would make competition from other NVIDIA AIBs that didn't make the partner program extremely difficult - if not unfeasible. This is because GPP-branded companies would receive perks such as: high-effort engineering engagements (likely, aids to custom designs); early tech engagement; launch partner status (as in, being able to sell GeForce-branded products at launch date); game bundling; sales rebate programs; social media and PR support; marketing reports; and the ultimate kicker, Marketing Development Funds (MDF). This last one may be known to our more attentive readers, as it was part of Intel's "Intel Inside" marketing program which spurred... a pretty incredible anti-trust movement against the company.
As a result of covering this story, HardOCP's Kyle Bennet says he expects the website to be shunned from now on when it comes to NVIDIA or NVIDIA partner graphics cards being offered for review purposes. Whether or not that will happen, I guess time will time; as time will tell whether or not there is indeed any sort of less... transparent plays taking place here.
317 Comments on NVIDIA's New GPP Program Reportedly Engages in Monopolistic Practices
NotebookCheck: Where are all the Kaby Lake-G laptops? Nvidia's GeForce Partner Program may be to blame
That said, I could see some vendors like ASUS refusing to sell a Republic of Gamers laptop with the chip because of GPP. HP and Dell, I doubt it. Intel is their #1 partner and AMD is their #2 partner. Doubt they care much what NVIDIA is doing.
Intel themselves seem to mark these CPUs as "announced", so there's no availability to speak of. But this may be caused exactly by what you've noted above.
With this GPP story, @Kyle stated at his [H] thread that nVidia's behaviour is anti-competitive and anti-consumer. Well, let's see if he will make a comment about this video as well, in which we have a reviewer who states that in all his reviewing years, ONLY AMD has pressed him and dictated him about how to do his reviews!!:eek: (*04:50min. of this video).
Personally, i don't know if Kyle will comment on this, -since, as he said, his intention is to warn consumers about this anti-competitive & anti-consumer GPProgram- , but personally, as a consumer myself, i feel that what Elric is stating for AMD is also anti-competitive and anti-consumer, so, me, as a consumer i'm putting this accusation in the same importance with Kyle's accusations for the GPProgram !!
1) He said up front that the guy responsible for it is no longer with AMD. Problem solved? Why is the video 7 minutes longer than that?
2) Accepting free hardware for review purposes always has strings attached. Some are worse than others.
3) Any reviewer that doesn't like those strings (which he admitted he does not) may secure the hardware for review from retail channels.
4) End of the video he was pretty much just promoting himself and his sugar daddy.
Asking reviewers to do or not do things is not something that falls under anti-trust law (definitely anti-press and something that should be frowned upon). Getting your partners to do something with the express purpose of hurting a competitor does.
So, anyone who wants a quick history lesson as a guide , -alongside our "beloved" GPP project:p !!!- , MUST give a look at Jim(AdoredTV)'s :respect:outstanding :respect:video!!! :
After you finish watching this "history" video , ask yourself these 2 :
1) ""Even after all these fines being applied to Intel, which one is the company who keeps dominating the computer market -financially&marketshare- if not ....Intel ? "".
With this as a given, what is the ..... "moral" lesson for the other companies ? perhaps that these kind of tactics can give you dominance over your competitors?
After all these methods being applied by Intel all these years, and still Intel being No1 , who can blame nVidia or any other company who will behave similarily ?
2) Still, besides all these methods that were used against AMD in the past, where exactly do we stand now at the present moment ? :
AMD is cooperating with Intel providing them with the graphic-power that Intel is lacking at !!!
(*And although AMD have aligned themselves with someone who had almost obliterated them from the market in the past, !!! yet still, some antiGPP-tech-journalists expect from me (*as a consumer i mean) to be outraged with these kind of corporate-tactics that even AMD seem to have forgotten!! , given their present alliances!! soooo, ....."no thanks, i won't bite ;)" )
It was already stated in this thread that Intel profited more from their rebate program than they paid in fines. NVIDIA has taken the same calculated risk with GPP.
>With this as a given, what is the ..... "moral" lesson for the other companies ?
The FTC doesn't just fine, they enforce as well and reevaluate compliance. Intel hasn't blatantly been anti-competitive since the FTC dropped the hammer on them.
>perhaps that these kind of tactics can give you dominance over your competitors?
It did, for a while. Intel had the inferior product (Pentium 4) yet AMD struggled to take marketshare from them. Intel sweetned the deal for OEMs under the table so they wouldn't offer AMD products.
>After all these methods being applied by Intel all these years, and still Intel being No1 , who can blame nVidia or any other company who will behave similarily ?
Intel remained dominant because of their process technology edge. Now with Global Foundries matching and exceeding Intel, Intel is losing marketshare again. Anti-competition law isn't about weakening businesses that sell good products; it is about stopping companies from shaping the market that is a barrier to competitors.
NVIDIA knows it's illegal and did it anyway. They're making the same calculated decision Intel did ~15 years ago. GPP's days are numbered because the law will eventually catch up.
> Still, besides all these methods that were used against AMD in the past, where exactly do we stand now at the present moment ?
AMD is selling chips to Intel as part of their semi-custom business. NVIDIA and Intel have a strained relationship, more so than AMD and Intel. Intel wanted a more powerful GPU because customers demand it, they didn't want to create one themselves for some reason, and they don't want to do business with NVIDIA, AMD was the only remaining choice.
since they don't have a problem to work with a company which applied these kind of fierce tactics against AMD many times in the past then why should i , the customer care? They are the directly-affected side but still , they are doing business with their former rivals so...... ;)
-(*to be honest, untill i saw Jim's video i wasn't aware of all these tactics that's why i posted this video.
I only remembered the incident with nVidia's nForce chipsets, -since i used to buy nForce motherboards back then- , which they were forced out of the market after a law dispute with Intel if i'm not mistaken. They were great chipsets as well, but , unlike now, i don't remember any tech-journalist starting a campaign back then saying "These tactics will damage consumer choices" .
Consumer choice indeed have been impacted back then though !! ;))-
You couldn't get AMD chips from Dell back when Intel was doing the rebates even though AMD had the better product. People buy Dells not caring what is in them. AMD was fiscally damaged because of the Dell/Intel arragement and Dell's customers were unwittingly getting inferior, uncompetitive products.
Since companies use to settle between them, then why should i be "obsessed" defending their interests ? !!
I was extremely sad back then, when due to legal arguments, a product that i used to buy ( nForce motherboards ) had been cut-off from the market, regardless of their high quality as a product. But these are the standard multinational-corporate tactics so i'm not surprised.
[*I know (*and after i saw Jim's video i'm most certain), as i'm sure you know as well, that multinational-companies will exploit every leverage they have in order to gain more &more marketshare].
BUT.... I can't -and never won't- understand Kyle's ......"obsession" about the GPProgram. !! That's my main problem.
That with the use of titles such as "GeForce Partner Program Impacts Consumer Choice" Kyle transforms a matter that should be settled at courts between companies, -whether this is legal or not-, into a matter that implicates consumers. He acts like he's not aware that these are standard multinational-companies-methods that's why i posted Jim's video, in order for all of us to remember what Intel used to do all these past years, and also, that's why i said that with nForce chipsets being cut-off, the "consumer choices had been also impacted" .Did anyone started a campaign back then in order to "protect consumer choices" ? I can't remember such a thing if anyone remembers differently he/she can enlighten me .....
Moving the memory controller (and later GPU) to the CPU eliminated the incentive to have different chipset manufacturers. Two chip packages are more costly, slower, and less efficient than integrating chipset features into the CPU. In other words, the chipset market was going away for good because of the evolution of technology. Motherboard manufactures can still implement competitive features of their own using the PCIE lanes the CPU exposes.
>Kyle transforms a matter that should be settled at courts between companies, -whether this is legal or not-, into a matter that implicates consumers.
It won't go to court without public drawing the interest of regulators. How is "GeForce Partner Program Impacts Consumer Choice" wrong? GPP certainly isn't improving consumer choice.
>Did anyone started a campaign back then in order to "protect consumer choices" ?
Not really because the primary reason why NVIDIA got into the chipset business is to sell integrated GeForce chips. Why did that technology work? Because the memory controller was in the chipset too. Since the memory controller moved to the chipset, the integrated GPU did too. In the end, consumer choice expanded because now they have an integrated GPU with the option of installing a dedicated GPU. You can also buy processors that have no integrated GPU as well.
People weren't happy about VIA and NVIDIA getting left behind but it was inevitable due to CPU memory needs.
Edit: Here's a thread from the time NVIDIA left the market: hardware.slashdot.org/story/09/10/09/1438204/NVIDIA-To-Exit-Chipset-Business
Remember, Intel signed a licensing agreement with NVIDIA to make their own integrated GPUs. That quote lead me to this: www.anandtech.com/show/4122/intel-settles-with-nvidia-more-money-fewer-problems-no-x86/2 No court is going to compel Intel to license DMI/QPI to NVIDIA when there's little in the way of profit margins there (can't reasonably differentiate their product from Intel's).
I don't think NVIDIA sued AMD over chipsets likely because AMD was teetering on the edge of bankruptcy at the time and AMD can't really offer NVIDIA anything NVIDIA wants unlike Intel. Intel effectively paved the way for AMD to make APUs.
I'm not a lawyer , he's not a lawyer, so we are both unable to judge what is inside legal boundaries or outside of them.
He said that he counseled his lawers and they told him that this program is most likely illegal, BUT nVidia has also their own lawyers, who have surely advised the company about the legality of this matter. So, obviously the lawyers from one of the two sides are mistaken. And since Kyle isn't a judge in order to make statements on legal matters, these are issues that should be addressed at courts, and Kyle shouldn't "flaming" things for which the courts haven't reached a decision yet.
P.S. As for the point whether or not this program "hurts consumer choices" , as a consumer myself , i have an entirely different perspective than Kyle's, and i can judge for myself if this "hurts" me or not.
I have analyzed my opinion extensively at [H]'s thread, before i get a warning from Kyle because i was just stating opinions that were different than his own.
1) To summarise very very briefly, one of the things i said: ( hardforum.com/threads/geforce-partner-program-impacts-consumer-choice.1955963/page-15 ) 2)EDIT: and also
3) I said here at TPU : ( www.techpowerup.com/forums/threads/in-aftermath-of-nvidia-gpp-asus-creates-arez-brand-for-radeon-graphics-cards.243088/page-2#post-3825246 ) P.S.2: Thanks for the link about nForce by the way. I'll give it a look tomorrow;). EDIT:From what i can remember though, is that until those chipsets were cut-off from the market, according to reviews, they had superior performance than their competitor's. And for myself , as a consumer that was what mattered the most;)
AMD is not the wounded party, at least not directly. They can't file suit until the effects of GPP definitively come back to them or a regulatory body like the FTC already rules that the terms of GPP are anti-trust material. Thing is, FTC doesn't investigate what they don't know about. Here's the timeline of what happened:
1) NVIDIA changed the terms of GPP.
2) AMD caught wind of this and communicated with their contacts trying to collect information about the language of the GPP because they could not obtain it directly from NVIDIA.
3) Kyle was one of the contacts and he started digging around. Because he wasn't directly affiliated with NVIDIA, the involved companies would talk off the record about GPP with him.
4) Kyle collated the information and ran it past his lawyers before publishing it knowing that his bridge to NVIDIA can be burned by going public with it.
5) The noise that Kyle's article generated caused other technology journalists to take a look at GPP to try to confirm/deny the claims. Most have responsed in concurrence.
6) The FTC started a probe into GPP. It often takes a year or more for the case to be brought forward.
7) Once the FTC rules GPP is anti-competitive, AMD will file suit against NVIDIA using the FTC ruling as leverage to get a settlement out of NVIDIA for damaging AMD's graphics card business. Consumers and developers alike choose Windows. Name a specific anti-competitive practice Microsoft did the enforce their market dominance in the last two decades (e.g. buy out competitor, pay people to use their product over a competitors, etc.). Who these companies want to do business with is entirely up to them; however, when a company decides to offer both products, NVIDIA can't pressure them to do anything where AMD is concerned and AMD can't pressure them to do anything where NVIDIA is concerned. That's anticompetitive. Performance didn't matter much after the FSB was moved entirely into the CPU.
Let's pretend that someone like NVIDIA wanted to make chipsets today. The only things they can do is modify USB2, USB3, SATA, PS/2, parallel ports, and maybe integrate audio. Thing is, all chipsets have the same PCIE budget exposed to it from the CPU. By adding more of these features, you reduce the lanes available to NVMe and AIBs. There's little in the way of differentiation between your product and what AMD/Intel offers. That's not because AMD/Intel wanted to shut NVIDIA out of the market; it's because the necessity for more bandwidth has lead to bringing everything closer to the CPU. Chipsets aren't a big money business anymore.
What i can do though is using my logic and try to make logical assumptions. So let me ask you this:
You said that : "5) The noise that Kyle's article generated caused other technology journalists to take a look at GPP to try to confirm/deny the claims. Most have responsed in concurrence."
Since only Kyle can claim that he has a certain document which proves that the agreement is illegal, this means that neither of us have the facts in order to conclude whether or not Kyle's statement is accurate. [*We must take his word for it, and personally, for different reasons than you can imagine (*not related to this thread, but an older topic) i have strong personal reasons to have some doubts.]
Anyway, to the point:
Let's say hypothetical, that the FTC will make a verdict which says that GPP isn't anti-competitive.
If this happens, can you tell me what nVidia can claim from Kyle afterwards ,if we take into consideration all this "flame" that Kyle has created so far that has damaged nVidia's reputation to the public from "The noise that Kyle's article generated" as you said ??? Fine (*EDIT:although, if i'm not mistaken , Microsoft was forced to be split in two back in 2000, due to monopoly tactics, but i can't remember exactly what happened, i must re-check it www.theguardian.com/technology/2000/jun/07/microsoft.business1 ), but until the courts judge otherwise, NOR nVidia has applied so far anything that is an anti-competitive practice!!
The only one so far who claims this, is Kyle, and since he's not a judge as far as i know, he has no authority to imply such things unless he goes to courts to prove himself right !!
So , although we had a judge's decision against Microsoft, afterwards Microsoft appealed and the judge's decision had been cancelled!!
So, what does Microsoft's case tells us? That even a primal-court's decision is possible be reversed afterwards through appeal, and in this case for nVidia, so far we don't even have a primal-court decision!!!
So, based on Microsoft's case, we can see how premature is right now for certain people to state a judge-alike verdicts for nVidia, without even having the authority to do that !!
Nvidia Blog: Pulling the Plug on GPP, Leaning into GeForce
If AMD didn't prod Kyle at HardOCP to write that inflamatory article, I wonder if anyone noticed GPP at all.