AMD Japan Files Suit Against Intel
Online staff -- EDN, June 30, 2005
Advanced Micro Devices Inc. has broadened its attack on Intel, filing two claims against Intel K.K. in the Tokyo High Court and the Tokyo District Court for alleged damages arising from violations of Japan’s Antimonopoly Act, AMD announced today.
This aggressive action comes on the heels of a complaint AMD filed in U.S. district court on June 27, claiming Intel has maintained its monopoly in the x86 microprocessor market by coercing customers not to deal with AMD. Intel president and CEO Paul Otellini addressed that suit on Thursday.
“Intel has always respected the laws of the countries in which we operate,” Otellini said in a statement. “We compete aggressively and fairly to deliver the best value to consumers. This will not change.
“Over the years, Intel has been involved in other antitrust suits and faced similar issues. Every one of those matters has been resolved to our satisfaction. We unequivocally disagree with AMD’s claims and firmly believe this latest suit will be resolved favorably, like the others.”
Meanwhile, the suit filed today in the Tokyo High Court seeks $50 million in alleged damages for AMD Japan, following on the Japan Fair Trade Commission’s (JFTC) findings in its March 8, recommendation that Intel K.K. committed violations of the Antimonopoly Act. The JFTC recommendation concluded that Intel K.K. interfered with AMD Japan’s business activities by providing exorbitant funds to five Japanese PC manufacturers (NEC, Fujitsu, Toshiba, Sony and Hitachi) on the condition that they boycott AMD processors. As a result, AMD Japan alleges it lost all of its sales to Toshiba, Sony and Hitachi, while sales to NEC and Fujitsu also fell precipitously.
Today’s second suit seeks to recover millions of dollars in damages for various alleged anticompetitive acts that exceed the scope of the JFTC recommendation.
Among those allegations, AMD Japan claims Intel K.K. persuaded a Japanese PC manufacturer to remove all of its AMD-based computer models from its product catalog and Web site, in exchange for a large amount of funds. The Japanese subsidiary also allegedly interfered with a joint promotional event led by AMD and a customer by purchasing all of the AMD-based PCs just prior to the event and replacing them with Intel-based PCs. Intel K.K. allegedly generously paid off this customer as an incentive to cooperate in this last-minute interference.
“These illegal actions have restricted fair competition and narrowed the choices available to consumers in the computer market," said David M. Uze, AMD Japan’s president and representative director, in a statement. “AMD Japan hopes to bring fair and open competition in the computer marketplace, allowing consumers to have a true choice.”
