AMD scores win in Intel antitrust case

— 10:39 AM on January 2, 2007

The Federal District Court in Delaware dealing with AMD's antitrust lawsuit against Intel has ordered Intel to produce documents pertaining to its conduct outside the U.S. The move is a major win for AMD, which previously had part of its case thrown out after Intel filed a motion to dismiss in May on the grounds that AMD was seeking recovery under U.S. law for foreign sales of processors produced abroad. Granting Intel's motion, Judge Joseph Farnan stated in September that AMD had "not demonstrated that the alleged foreign conduct of Intel has direct, substantial and foreseeable effects in the United States."

However, Judge Farnan received a recommendation (PDF) from Special Master Vincent Poppiti last month that said, "as . . . approximately 68% of the total worldwide production of computers powered by x86 microprocessors are sold to non-U.S. customers evidence of foreign exclusionary conduct is essential for AMD to demonstrate." As a result of this recommendation, Judge Farnan has overruled Intel's motion to dismiss and appointed Poppiti to preside over future disputes about evidence discovery in the case.

Considering Intel's alleged antitrust conduct is the subject of investigations in both Europe and South Korea, and the company was also ordered to cease anticompetitive behavior in Japan two years ago, the judge's decision doesn't bode well for Intel.

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