July 12, 2005 14:28 ET

AMD Supports European Commission's Dawn Intel Raids for Possible Antitrust Violations

SUNNYVALE, CALIFORNIA--(CCNMatthews - July 12, 2005) - AMD (NYSE:AMD) released the following statement today regarding the European Commission's dawn Intel raids across Europe:

"Today's dawn raids should come as good news to consumers across Europe," said Thomas M. McCoy, AMD executive vice president, legal affairs and chief administrative officer. "Every computer user has a strong interest in ensuring that the full truth about Intel's anti-competitive abuses is revealed and corrected. The European Commission dawn raids show that Intel cannot and should not escape the scrutiny of antitrust officials around the world - nor can Intel escape the consequences of its anti-competitive actions, which raise prices, threaten innovation and harm consumers."

Today's action takes place against a backdrop of increasing scrutiny of Intel's business practices.

AMD filed a 48-page complaint in U.S. federal district court against Intel on June 27th, explaining in detail how Intel has unlawfully maintained its monopoly in the x86 microprocessor market by engaging in worldwide coercion of customers from dealing with AMD. It 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. AMD's complaint is available for download at

The U.S. litigation follows a recent ruling from the Fair Trade Commission of Japan (JFTC) on March 8, which found that Intel abused its monopoly power to exclude fair and open competition, violating Section 3 of Japan's Antimonopoly Act. These findings reveal that Intel deliberately engaged in illegal business practices to stop AMD's increasing market share by imposing limitations on Japanese PC manufacturers. Intel did not contest these charges.

AMD Japan filed two claims on June 30 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.

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.

"We have illustrated specifics of Intel's anti-competitive abuses in our 48-page antitrust complaint." Mr. McCoy added, "We are sure that today's dawn raids will yield even more insight into Intel's antitrust violations."

AMD continues to work with antitrust authorities around the world to look at the market failure and consumer harm Intel's business practices are causing in their nations.

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