Intel’s CEO Responds to AMD Lawsuit

by Anton Shilov
06/29/2005 | 10:04 PM

Intel Corp.’s President and CEO Paul Otellini Wednesday addressed the antitrust lawsuit filed against Intel this week by Advanced Micro Devices. The AMD lawsuit asserted a number of complaints regarding the business practices of Intel and its customers.

“Intel has always respected the laws of the countries in which we operate. We compete aggressively and fairly to deliver the best value to consumers. This will not change,” Paul Otellini said.

AMD said Intel’s illegal and unfair actions include the following:

• Intel has forced major customers into exclusive or near-exclusive deals;
• Intel has conditioned rebates, allowances and market development funding on customers’ agreement to severely limit or forego entirely purchases from AMD;
• Intel has established a system of discriminatory, retroactive, first-dollar rebates triggered by purchases at such high levels as to have the practical and intended effect of denying customers the freedom to purchase any significant volume of processors from AMD;
• Intel has threatened retaliation against customers introducing AMD computer platforms, particularly in strategic market segments;
• Intel has established and enforced quotas among key retailers effectively requiring them to stock overwhelmingly, if not exclusively, Intel-powered computers, thereby artificially limiting consumer choice;
• It has forced PC makers and technology partners to boycott AMD product launches and promotions;
• Intel has abused its market power by forcing on the industry technical standards and products which have as their central purpose the handicapping of AMD in the marketplace.

“Over the years, Intel has been involved in other antitrust suits and faced similar issues. Every one of those matters has been resolved to our satisfaction. We unequivocally disagree with AMD’s claims and firmly believe this latest suit will be resolved favorably, like the others,” added Intel chief.

“Intel believes in competing fairly and believes consumers are benefiting from this vigorous competition. AMD has chosen yet again to complain to a court about Intel’s success with a legal case full of excuses and speculation,” another statement by Intel read.