Intel defends its actions in court
Intel defends its actions in court
Sep 02, 2005: Intel has responded to a lawsuit initiated by Advanced Micro Devices, which asserts that Intel has committed illegal antitrust violations to exclude competition, by refuting the claims and stating that its business practices are fair and lawful.
Intel told the U.S. District Court in Delaware that AMD's claims are factually incorrect and contradictory, and it described the semiconductor industry business model that has led to phenomenal growth and steadily increasing value to customers over the years.
It claims that the business model is based on three fundamental principles: production, product and price.
Bruce Sewell, the Intel general counsel, said that Innovation, investment, customer focus and great products have led to Intel's success over the years.
"These are things that have been fundamental to our decision making as we've sought to move the industry and the pace of technology forward. AMD's complaint represents a case study in legal dissonance. Although AMD has purportedly brought its complaint to promote competition, its true aim is the opposite.
"Under the cover of competition law, AMD seeks to shield itself from competition. AMD seeks to impede Intel's ability to lower prices and thereby to allow AMD to charge higher prices. AMD's colourful language and fanciful claims cannot obscure AMD's goal of shielding AMD from price competition."
However, AMD has hit back at Intel's response. Thomas M. McCoy, the AMD executive vice president of legal affairs and the chief administrative officer, said that Intel's response is not surprising considering what they are trying to hide, but the facts of illegal monopoly abuse are clear and undeniable.
"Intel's anticompetitive business practices are under intense scrutiny by Governments around the world. The Fair Trade Commission of Japan found Intel guilty of antitrust violations that harmed consumers based on direct evidence, and still Intel refuses to acknowledge wrongdoing.
"Intel's illicit conduct forces customers and consumers to pay artificially higher prices and limits their ability to choose the best products available."
AMD also highlighted a raid on the Intel offices across Europe, recently carried out by the European Commission, as part of its ongoing investigation into Intel for antitrust violations.
The South Korean antitrust authorities are also investigating the marketing and rebate practices of Intel. They have conducted preliminary investigations into five South Korean PC makers supplied by Intel for the case.
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