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AMD Comments on European Commission Ruling that Intel Violated EU Law and Harmed Consumers

  • 14 May, 2009 13:40

<p><em>EU Orders Intel to Change Business Practices Third Global Antitrust Agency
Condemns Intel’s Anticompetitive Conduct</em><strong><br/>
Sydney, Australia</strong> — <strong>May 14, 2009</strong> — The European
Commission today found Intel guilty of abusing its dominant position in the global
x86 microprocessor market, saying that “Intel has harmed millions of European
consumers by deliberately acting to keep competitors out of the market for computer
chips for many years. Such a serious and sustained violation of the EU’s
antitrust rules cannot be tolerated.” The Commission also stated that “there
is evidence that Intel had sought to conceal the conditions associated with its
payments.” The EC decision requires Intel to change its business practices
immediately and fines Intel a record EUR 1.06 billion (US $1.45 billion).<br/>
“Today’s ruling is an important step toward establishing a truly competitive
market,” said Dirk Meyer, AMD president and CEO. “AMD has consistently
been a technology innovation leader and we are looking forward to the move from
a world in which Intel ruled, to one which is ruled by customers.”<br/>
“After an exhaustive investigation, the EU came to one conclusion –
Intel broke the law and consumers were hurt,” said Tom McCoy, AMD executive
vice president for legal affairs. “With this ruling, the industry will benefit
from an end to Intel’s monopoly-inflated pricing and European consumers
will enjoy greater choice, value and innovation.”<br/>
The EC decision stated specifically that:<br/>
•“Intel gave wholly or partially hidden rebates to computer manufacturers
on condition that they bought all, or almost all, their x86 CPUs from Intel”.<br/>
•“Intel made payments to major retailer Media Saturn Holding from
October 2002 to December 2007 on condition that it exclusively sold Intel-based
PCs in all countries in which Media Saturn Holding is active.“<br/>
•Intel “interfered directly in the relations between computer manufacturers
and AMD. Intel awarded computer manufacturers payments - unrelated to any particular
purchases from Intel - on condition that these computer manufacturers postponed
or cancelled the launch of specific AMD-based products.”<br/>
Intel has so far failed to convince any antitrust enforcement agency that its
business practices are lawful and pro-consumer.<br/>
In 2008, the Korea Fair Trade Commission (KFTC) issued a 26 billion won fine (approximately
$25.4 million USD) saying that Intel’s abuse of its dominant position included
coercing and paying customers millions of dollars on the condition that they use
only Intel chips, delay launches of AMD products, and/or not develop any new products
with AMD chips. The KFTC also found that, “South Korean consumers had to
buy PCs at higher prices as domestic PC makers were forced to buy Intel’s
pricier CPU.” In addition to a fine, the KFTC ordered Intel to stop the
practice of offering payments to PC makers conditioned upon them not doing business
with AMD. Intel is in the process of appealing the ruling.<br/>
In 2005, the Japan Fair Trade Commission (JFTC) ruled that Intel had violated
the country’s anti-monopoly laws by illegally forcing full or partial exclusivity
with five Japanese PC makers. Intel did not appeal the ruling.<br/>
In the United States, the U.S. Federal Trade Commission (FTC) and New York Attorney
General’s office are investigating Intel for abuse of its monopoly position.
In 2005, AMD filed private litigation in the US District Court of Delaware, which
is scheduled for trial in spring 2010.<br/>
<strong>About AMD</strong><br/>
Advanced Micro Devices (NYSE: AMD) is an innovative technology company dedicated
to collaborating with customers and technology partners to ignite the next generation
of computing and graphics solutions at work, home and play. For more information,
visit <a href="#"></a><br/>
©2009, Advanced Micro Devices, Inc. AMD, the AMD Arrow logo, ATI, the ATI
logo, Catalyst, Radeon, and combinations thereof, are trademarks of Advanced Micro
Devices, Inc. Other names are for informational purposes only and may be trademarks
of their respective owners.<br/>
<strong>PR CONTACT</strong><br/>
Renato Catalan<br/>
Gap Marketing and Management Pty Ltd<br/>
Website: <a href="#"> </a></p>

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