Otellini Says Intel Will Win Legal Battle With AMD - InformationWeek

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7/19/2005
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Otellini Says Intel Will Win Legal Battle With AMD

Intel CEO denies wrongdoing in Japan and says it settled charges there to avoid disruption for customers.

Intel president and CEO Paul Otellini on Tuesday dismissed charges from Advanced Micro Devices Inc. that it has illegally dampened competition in the microprocessor market and said that Intel only agreed to sanctions in a recent ruling in Japan in an effort to resolve the legal battle.

"I want to be absolutely clear where Intel stands," Otellini said during a conference with press and analysts Tuesday as the company released its second-quarter earnings report. "Intel competes aggressively and fairly around the world. This formula has led to Intel's success and it will not change. ... We unequivocally disagree with AMD's claims and are confident this latest suit, like the others, will be resolved favorably for Intel."

AMD this month sued Intel in U.S. District Court and in Japan, claiming Intel has used intimidation, bullying, and illegal payments to coerce potential customers to either not use AMD processors or severely limit their use.

Intel agreed to "certain recommendations" from the Japan Fair Trade Commission in March, Otellini said, "while disagreeing with their factual and legal conclusions ... because it allowed us to continue serving our customers without disruption."

The Japanese commission found Intel had committed violations of the Antimonopoly Act. The European Commission is also investigating Intel's practices.

After his prepared statement, Otellini declined to answer questions about the lawsuits.

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