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Thursday 30th June 2005
AMD sues Intel for $50m in Japan 12:35PM, Thursday 30th June 2005
The legal battle between AMD and Intel has hotted up on the eastern front. AMD Japan has filed a claim for damages of $50m (5.5bn yen) against Intel for violations of Japan's Anti-monopoly Act.

It is not surprising that AMD Japan is leading the way in the fight with Intel. It was back in April 2004, after all, that the first shots were heard, when Japanese Fair Trade Commission (JFTC) officials paid a visit to Intel's offices amid allegations of anti-competitive behaviour. And in March of this year Intel were indeed found guilty of anticompetitive behaviour in Japan.

Intel was found to have interfered with AMD Japan's business activities by providing large funds to five Japanese PC manufacturers (NEC, Fujitsu, Toshiba, Sony, and Hitachi) on the condition that they refused to buy AMD processors. As a result, AMD reported losing all of its sales to Toshiba, Sony, and Hitachi, while sales to NEC and Fujitsu also fell significantly.

Intel did not dispute the JFTC findings.

'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 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.'

AMD is also widening its net and filing another suit in Japan claiming damages from areas not covered by the JFTC.

Specific examples of anticompetitive actions by Intel, which are quoted by AMD include: instructing a Japanese PC manufacturer to remove from its product catalogue and website all computers using AMD processors; putting pressure on an AMD customer that was scheduled to attend a new product launch of AMD products, with the customer cancelling its attendance; and interfering with a joint promotional event being held by AMD and a customer to promote PCs using a new AMD processor.

The last case was particularly galling for AMD. Just before the promotional event was scheduled to take place, it says, Intel purchased all the PCs that had AMD processors and replaced them with PCs using Intel processors. Intel is accused of providing 'a large amount of funds' to the customer as an incentive to cooperate in the last-minute interference.

Earlier this week AMD launched a US legal attack on its microprocessor rival - AMD sets the lawyers on 'improper' Intel.

AMD said that Intel is able to use its 80 per cent market share by unit sales and 90 per cent by revenue to exercise 'super-dominant market power'.

'Everywhere in the world, customers deserve freedom of choice and the benefits of innovation - and these are being stolen away in the microprocessor market,' said Hector Ruiz, chairman, president and CEO of AMD. 'Whether through higher prices from monopoly profits, fewer choices in the marketplace or barriers to innovation - people from Osaka to Frankfurt to Chicago pay the price in cash every day for Intel's monopoly abuses.'

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