AMD seeks damages from Intel in Japanese court

— 10:14 AM on June 30, 2005

The legal broadside from AMD continues today with the firm filing suit in Japan against Intel's Japanese sales subsidiary. Here's how AMD's press release describes the substance of the dispute:

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 in its March 8, 2005 Recommendation that Intel K.K. committed violations of the Antimonopoly Act. The JFTC Recommendation concluded that Intel K.K. interfered with AMD Japan’s business activities by providing large amounts of funds to five Japanese PC manufacturers (NEC, Fujitsu, Toshiba, Sony, and Hitachi) on the condition that they refuse to purchase AMD processors. As a result of these illegal acts, AMD Japan suffered serious damages, losing all of its sales to Toshiba, Sony, and Hitachi, while sales to NEC and Fujitsu also fell precipitously.
AMD has also filed another suit seeking additional damages for Intel actions not covered by the JFTC findings, and they describe the whole shebang as "only the tip of the iceberg."

For its part, all we've seen so far out of Intel in response to AMD's legal barrage is a brief statement by CEO Paul Otellini that reads like so:

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

“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.”

I'm sure there will be more, in due time.

Meanwhile, a quick update on the most critical aspect of the case. The catch phrase that has caught on at various media outlets comes from a Gateway exec, probably Ted Waitt himself, given his colorful, slightly oddball personality. You will hear it constantly over the coming weeks, so get used to it. Here it is:

According to Gateway executives, their Company has paid a high price for even its limited AMD dealings. They claim Intel has beaten them into "guacamole" in retaliation.
So not only did Intel pound on them mercilessly, but Otellini and the gang also added peppers, lime, onions, and diced tomatoes to flavor. Brutal!
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