- KFTC Raids Intel Offices, Offices of Major Korean PC Manufacturers -
- Intensifying Global Scrutiny into Intel's Illegal, Anti-competitive Business Practices -
SUNNYVALE, Calif. - Feb. 9, 2006 - AMD (NYSE: AMD) released the
following statement today regarding the Korean Fair Trade Commission's
(KFTC) dawn raids as part of their investigation into possible
violations by Intel Corporation of that country's Monopoly Regulation
and Fair Trade Act:
"The dawn raids in Korea make it abundantly clear that competition
authorities worldwide are intensifying their investigative efforts into
Intel's anticompetitive business practices because they have good reason
to believe evidence of illegal monopoly abuse is there to be found,"
said Thomas M. McCoy, AMD executive vice president, legal affairs and
chief administrative officer. "Similar dawn raids conducted
by competition authorities in Japan revealed evidence of illegal
business practices that violated that country's Antimonopoly Act. The
JFTC ruled that Intel conditioned deals with Japanese PC OEMs based on
excluding competition. Last year, the European Commission also
conducted dawn raids across Europe to gather evidence of Intel monopoly
abuse within the European Union. How many raids in how many countries
need to happen before Intel accepts responsibility for its
anticompetitive actions and ceases its unlawful business practices?"
The KFTC's dawn raids are part of an investigation into Intel's business
dealings with four South Korean PC makers. AMD continues to believe - as
specified in its private U.S. antitrust complaint filed on June 27, 2005
in U.S. federal court in Delaware - that PC manufacturers worldwide are
victims of Intel's monopoly power.
The dawn raids in Korea take place against a backdrop of increasing
scrutiny of Intel's business practices.
AMD's complaint against Intel explains in detail how Intel unlawfully
maintained its monopoly in the x86 microprocessor market by engaging in
worldwide coercion of customers from dealing with AMD. It identifies 38
companies that have been victims of coercion by Intel - including large
scale computer-makers, small system-builders, wholesale distributors,
and retailers, through seven types of illegality across three
continents. AMD's complaint is available for download at
http://www.amd.com/breakfree.
The U.S. litigation follows a March, 2005 ruling from the Fair Trade
Commission of Japan (JFTC), which found that Intel abused its monopoly
power to exclude fair and open competition, violating Section 3 of
Japan's Antimonopoly Act. These findings reveal that Intel deliberately
engaged in illegal business practices to stop AMD's increasing market
share by imposing limitations on Japanese PC manufacturers. Intel did
not contest these charges.
AMD Japan filed two claims on June 30, 2005 against Intel Corporation's
Japanese subsidiary, Intel K.K., in the Tokyo High Court and the Tokyo
District Court for damages arising from violations of Japan's
Antimonopoly Act. On December 16,
2005, the Tokyo District Court issued a ruling which denied Intel K.K.'s
request to keep evidence of its illegal business practices from the
public record and required the JFTC to turn over the evidence it
obtained during its year-long investigation of Intel to the court, AMD
and Intel.
In July 2005, the European Commission - in close coordination with
national competition authorities - conducted dawn raids against Intel
offices and the offices of major European PC manufacturers and retailers
to gather evidence as part of their ongoing investigation into Intel's
business practices.
AMD continues to work with antitrust authorities around the world to
look at the market failure and consumer harm Intel's business practices
are causing in their nations.
AMD's Position on Fair and Open Competition
AMD stands for fair and open competition and the value and variety
competition delivers to the marketplace. Innovative AMD technology
allows users to break free to reach new levels of performance,
productivity and creativity. Businesses and consumers should have the
freedom to choose from a range of competitive products that come from
continuous innovation. When market forces work, consumers have choice
and everyone wins. For more information, please visit
http://www.amd.com/breakfree
About AMD
Advanced Micro Devices (NYSE: AMD) is a leading global provider of
innovative microprocessor solutions for computing, communications and
consumer electronics markets. Founded in 1969, AMD is dedicated to
delivering superior computing solutions based on customer needs that
empower users worldwide. For more information visit http://www.amd.com