The war between Intel and AMD has reached a crescendo as Intel has decided to comply with the Japan Fair Trade Commission (JFTC) ruling which has found the chip giant guilty of violating Section 3 of Japan's Antimonopoly Act.
In the latest development, the Japanese authorities have accepted that Intel used deliberate and systematic anti-competitive behavior for its benefit. The JFTC determined that Intel conditioned its pricing based on customers not doing business with competitors.
Intel has been very careful in its response since it claims that its Japanese subsidiary, Intel K.K. (IJKK), is accepting a Recommendation from the Japan Fair Trade Commission. Vice president and general counsel for Intel, Bruce Sewell even went so far as to claim, 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 the best products and service, we have decided to accept the Recommendation... AMD, of course, was quick to reply by claiming that Intel, ...has conspicuously failed to either accept responsibility for its actions or acknowledge that competition is best served when customers and consumers have a choice.
According to the JFTC however, which found that:
- Some manufacturers were required to buy 100 per cent of their CPUs from Intel; another manufacturer was forced to curtail its non-Intel purchases to 10 per cent or less;
- Intel separately conditioned rebates on the exclusive use of Intel CPUs in specific PC product lines or brands in order to eliminate competitor CPUs from key OEM brand lines;
- Intel's activities in Japan include the use of its Intel Inside program, market development funds and other rebate programs. Intel's tactics lock-in OEMs and prevent them from doing business with Intel's competitors.
Intel had ten days to either comply with or appeal this ruling and requested a two week deadline extension. Intel elected to accept the Recommendation which means that the company will need to alter business practices and implement other remedies immediately to meet the guidance in the Recommendation.
The European Commission recently stated that it is also investigating Intel for possible similar anti-competitive business practices in Europe and is cooperating with the Japanese authorities. While the ruling leaves the door wide open for similar investigations all over the world as well.
