AMD Keeps Up Pressure On Intel With Japanese Lawsuits

Advanced Micro Devices Inc. is maintaining legal pressure on rival Intel Corp., filing two lawsuits for damages in Japan alleging violations of Japan's Antimonopoly Act.

June 30, 2005

2 Min Read
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LONDON — Advanced Micro Devices Inc. is keeping up the legal pressure on rival Intel Corp., filing two lawsuits for damages in Japan alleging violations of Japan's Antimonopoly Act.

In March, Intel was criticized by the Japanese authorities and ordered to amend it business practices. AMD filed suit in Deleware on June 27 alleging monopolistic coercion.

In the first of two lawsuits filed in Tokyo High Court, AMD is seeking a total of $55 million in damages from Intel for violating Japan's Antimonopoly Act. The move follows the Japan Fair Trade Commission (JFTC)'s findings in March that Intel's Japanese subsidiary violated Japanese antitrust laws.

JFTC's "recommendation" concluded that Intel K.K. interfered with AMD Japan's business activities by providing funds to five leading Japanese PC manufacturers — NEC, Fujitsu, Toshiba, Sony and Hitachi — on the condition that they refuse to purchase AMD processors.

An additional suit filed at the Tokyo District Court seeks damages for various alleged anticompetitive acts by Intel not covered by the JFTC recommendation.In a statement Thursday (June 30), AMD alleged that Intel targeted promotional events held by AMD. In one case, AMD claimed that Intel purchased a PC maker's entire inventory of computers using AMD processors and replaced them with PCs using Intel processors. The alleged swap took place immediately before an event intended to promote PCs using a new AMD processor.

AMD Japan also alleged that Intel instructed a Japanese PC manufacturer to remove from its product catalog and Web site all computer models using processors made by AMD. In exchange, Intel allegedly provided funds to the manufacturer.

"These illegal actions have restricted fair competition and narrowed the choices available to consumers in the computer market," David Uze, AMD Japan's president and representative director, said in a statement. "In March of this year, the JFTC clearly found that Intel K.K. violated the law. AMD Japan hopes to bring fair and open competition in the computer marketplace, allowing consumers to have a true choice."

Along with the U.S. and Japanese lawsuits, AMD has been buying full-page ads in major U.S. newspapers to make its case against Intel.

—Yoshiko Hara contributed to this report from Tokyo.0

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