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AMD VS. Intel: Evidence Against Intel Will Be Allowed

Posted: Fri Dec 16, 2005 9:05 am
by Apoptosis
Tokyo District court DENIES INTEL K.K. argument TO KEEP EVIDENCE OBTAINED BY JFTC OF ILLEGAL BUSINESS PRACTICES FROM THE PUBLIC RECORD

- Fair Trade Commission of Japan to Turn Over Evidence Collected In Its Investigation of Intel K.K. By March 17, 2006 -
TOKYO, Japan - Dec. 16, 2005 - Tokyo District Court today required the
disclosure of evidence collected by the Fair Trade Commission of Japan
(JFTC) during its investigation of Intel K.K. ("Intel") for violating
the country's Antimonopoly Act. The evidence, discovered in raids of
Intel K.K. offices as well as major Japanese OEM manufacturers in April,
2004, formed the basis of the JFTC's Recommendation against Intel. Legal
counsel for AMD Japan intend to use the JFTC's evidence as part of its
law suit against Intel in Japan, filed June 30th, 2005 (AMD Japan v.
Intel K.K.).

The ruling was issued at the conclusion of a hearing in which counsel
for both AMD Japan and Intel addressed the production of documents
collected by the JFTC during its year-long investigation into Intel for
violating Japan's Antimonopoly Act.

"Today's court ruling sends the message that the truth about Intel's
illegal monopoly abuse will soon see the light of day," said Thomas M.
McCoy, AMD executive vice president, legal affairs and chief
administrative officer. "We thank the court for its sound decision, and
we believe that it sends a clear message worldwide that Intel cannot
hope to hide the truth about its anti-competitive business practices any
longer; not from the law or from consumers everywhere who deserve to
know the facts. We believe the JFTC's evidence will show what people
inside our industry already know well - that Intel abuses its monopoly
position to threaten and intimidate OEMs not to do business with AMD."

McCoy continued, "What's at stake is the future of computing in
a world economy that grows more dependent on microprocessors daily.
Consumers around across the globe are being harmed by Intel's abusive
monopoly- preservation tactics through higher prices, stifled innovation
and reduced choice."

The JFTC Recommendation Against Intel

On March 8, 2005, the JFTC found that Intel abused its monopoly power to
exclude fair and open competition, violating Section 3 of Japan's
Antimonopoly Act. The findings revealed that Intel used coercive,
illegal tactics to stop AMD's growing success and increasing market
share, which reached 22% in 2002, by imposing limitations on Japanese PC
manufacturers (which sell notebook and desktop computers to customers
around the world).

The JFTC Recommendation was the culmination of an 11-month investigation
that has established patterns of anti-consumer and anti-competitive
behavior. The commission found that, because of AMD's inroads into
Intel's market share, Intel deliberately set out to artificially limit
AMD by imposing conditions on five Japanese manufacturers (later
revealed to be NEC Corp., Toshiba Corp., Hitachi Ltd., Sony Corp., and
Fujitsu, Ltd.) that together represented 77% of all CPUs sold in Japan.
Specifically, the JFTC found that:

o One manufacturer was coerced to buy 100% of its CPUs from
Intel; another manufacturer was forced to curtail its non-Intel
purchases to 10% or less;

o Intel separately conditioned rebates on the exclusive use of
Intel CPUs throughout an entire series of computers sold under a single
brand name in order to exclude AMD CPUs from distribution;

o The mechanisms used to achieve these ends included rebates and
marketing practices that includes the "Intel Inside" program and market
development funds provided through Intel's corporate parent in the
United States.

The Recommendation noted that Intel imposed these restrictions in direct
response to AMD's growing market share from 2000-2002. The
Recommendation also noted that as a result of this misconduct, the
combined market share of AMD and a second, much smaller CPU company fell
from 24% in 2002 to 11% in 2003.

The JFTC imposed a number of restrictions on Intel. Among them, it must
notify its customers and educate its employees that it may no longer
provide rebates and other funds to Japanese computer manufacturers on
conditions that exclude competitors' CPUs.

The investigations into Intel's business practices by the European
Commission and the Fair Trade Commission of Korea for violations similar
to those found in Japan by the JFTC remain ongoing.

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

AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash
memory devices and low-power processor solutions for the computer,

communications and consumer electronics industries. AMD is dedicated to
delivering standards-based, customer-focused solutions for technology
users, ranging from enterprises to government agencies and individual
consumers. For more information visit http://www.amd.com