Intel licensed x86 to AMD originally because Intel was unable to keep up with demand.
It wasn't so much that Intel couldn't keep up with demand, more that IBM's policy required that a second source be available just in case they couldn't.
AMD has now breached the license. Intel has no responsibility to keep AMD in business. Intel can get another foundry to make x86 CPUs. There's no law against being a monopoly.
No, there is no law against being a monopoly. There are laws against being an abusive monopoly however. Intel has been convicted of abusing it's monopoly status in Japan, has at least been accused of doing so in the EU. Maybe AMD could file a complaint in the USA also and have it successfully investigated. Once convicted of being an abusive monopoly the rules change.
Natural law is against being a failure like AMD.
In theory the UK monarch can veto any law parliament puts before him or her. In practice, vetoing rarely happens as it can lead to the removal of the monarchs head. Intel should be careful just how far they push this as states could just decide they are abusing their position and remove their right to x86 all together.