Advanced Micro Devices (AMD) has slammed Intel`s response to the Japanese Fair Trade Commission (JFTC) recommendation that Intel violated Section 3 of Japan`s Antimonopoly Act.
This comes in response to Intel`s Japanese subsidiary, Intel KK (IJKK), accepting the JFTC recommendation but not agreeing with the facts underlying the allegations and the application of the law in the recommendation.
"Although Intel`s willingness to comply with the JFTC recommendation is a step in the right direction, it has conspicuously failed to either accept responsibility for its actions or acknowledge that competition is best served when customers and consumers have a choice," says Thomas McCoy, executive VP of AMD.
"Intel respectfully disagrees with the allegations contained in the recommendation, but in order to continue to focus on the needs of customers and consumers, and continue to provide them with products and services, we have decided to accept the recommendation," says Bruce Sewell, VP at Intel.
"We believe the allegations misinterpret important aspects of our business practices and fail to take into account the competitive environment within which Intel and its customers compete," he adds.
The JFTC recommendation, issued on 8 March, found Intel guilty of anti-competitive behaviour between 2000 and 2002 by abusing its monopoly power to exclude fair and open competition, thereby violating Section 3 of Japan`s Antimonopoly Act.
The recommendation found that Intel posed limitations on Japanese PC manufacturers, requiring some manufacturers to purchase 100% of their CPUs from Intel, while other manufacturers were restricted to purchasing 10% or less of non-Intel products.
These restrictions directly caused the Japanese market share of AMD and a smaller CPU company to fall from 24% in 2002 to 11% in 2003, notes the recommendation.
The JFTC has imposed restrictions on IJKK`s business practices and the subsidiary was penalised with an undisclosed fine.
The European Commission recently stated that it is investigating Intel for similar anti-competitive business practices in Europe.
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