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Full Press Release Title:
"AMD Japan Files Claim for Damages Arising from Violations of Japan’s Antimonopoly Act Against Intel K.K. in Tokyo High Court and Tokyo District Court"
– AMD Japan Seeks to Restore Fair and Open Competition for the Japan PC and Server Marketplace –
TOKYO, Japan -- June 30, 2005 --AMD
Japan (Shinjuku-ku, Tokyo, David M. Uze, President and Representative
Director) today filed two claims 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.
The suit in the Tokyo High Court seeks US$50 million (approx.
5.5 billion yen) in damages, following on the Japan Fair Trade
Commission (JFTC)’s findings in its March 8, 2005 Recommendation that
Intel K.K. committed violations of the Antimonopoly Act. The JFTC
Recommendation concluded that Intel K.K. interfered with AMD Japan’s
business activities by providing large amounts of funds to five
Japanese PC manufacturers (NEC, Fujitsu, Toshiba, Sony, and Hitachi) on
the condition that they refuse to purchase AMD processors. As a result
of these illegal acts, AMD Japan suffered serious damages, losing all
of its sales to Toshiba, Sony, and Hitachi, while sales to NEC and
Fujitsu also fell precipitously. The suit in the Tokyo High Court
follows Intel K.K.’s acceptance of the JFTC Recommendation. In
accepting the Recommendation, Intel K.K. did not dispute the JFTC
findings.
An additional suit filed at the Tokyo District Court level seeks to
recover millions of dollars in damages for various anticompetitive acts
in addition to what is covered in the scope of the JFTC Recommendation.
These anticompetitive acts also had the effect of interfering with AMD
Japan’s right to engage in normal business and marketing activities.
In the complaint, AMD Japan points to the following specific examples of anticompetitive actions taken by Intel:
- Instructing a Japanese PC manufacturer to remove from its product
catalog and Internet website all computer models using processors made
by AMD, in exchange for providing a large amount of funds to that
manufacturer;
- Putting pressure on an AMD customer that was scheduled to attend a
new product launch of AMD products. The customer eventually had to
cancel its attendance at the new product launch;
- Interfering with a joint promotional event being held by AMD and a
customer to promote PCs using a new processor developed by AMD. Just
before the promotional event was scheduled to take place, Intel
purchased all the PCs that had AMD processors and replaced them with
PCs using Intel processors. Intel K.K. provided a large amount of funds
to this customer as an incentive to cooperate in this last-minute
interference.
These acts represent only the tip of the iceberg of Intel’s worldwide
coercion of customers to prevent them from doing business with AMD
Japan. AMD, the parent of AMD Japan, also filed suit in the United
States on June 27, 2005 to stop Intel’s illegal business practices.
Intel continues to refuse to acknowledge that its conduct is
wrongful. Yet its anticompetitive acts, designed to restrict AMD's
market share, clearly constitute an abuse of Intel's dominant position
in the processor market.
"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’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.
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