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Tuesday, June 28, 2005
AMD Files Antitrust Complaint Against Intel


AMD filed today an antitrust complaint against Intel yesterday in U.S. federal district court. In a 48-page complaint, AMD accuses Intel that it has unlawfully maintained its monopoly in the x86 microprocessor market by engaging in worldwide coercion of customers from dealing with AMD.

AMD 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.

This litigation follows a recent 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.

The European Commission has stated that it is pursuing an investigation against Intel for similar possible antitrust violations and is cooperating with the Japanese authorities.

The case pits Intel's main rival against the world's largest manufacturer of microprocessors in what could be a long and tough legal fight.

The 48-page complaint details numerous examples of what Diamond describes as "a pervasive, global scheme to coerce Intel customers from freely dealing with AMD to the detriment of customers and consumers worldwide." According to the complaint, Intel has unlawfully maintained its monopoly by, among other things:

- Forcing major customers such as Dell, Sony, Toshiba, Gateway, and Hitachi into Intel-exclusive deals in return for outright cash payments.

- Forcing other major customers such as NEC, Acer, and Fujitsu into partial exclusivity agreements by conditioning rebates, allowances and market development funds (MDF) on customers' agreement to severely limit or forego entirely purchases from AMD.

- Threatening retaliation against customers for introducing AMD computer platforms, particularly in strategic market segments such as commercial desktop.

- Establishing and enforcing quotas among key retailers such as Best Buy and Circuit City, effectively requiring them to stock overwhelmingly or exclusively, Intel computers, artificially limiting consumer choice.

- Forcing PC makers and tech partners to boycott AMD product launches or promotions;

- Abusing its market power by forcing on the industry technical standards and products that have as their main purpose the handicapping of AMD in the marketplace.

To view the full text of the complaint, please visit http://www.amd.com/breakfree.


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