Intel Complies with Japan Antitrust Order


By Daniel Sorid TOKYO/NEW YORK (Reuters) - Intel Corp. said it will comply with an order from Japanese antitrust authorities to eliminate discounts that regulators charged had illegally locked rivals out of the market. But the world's largest chip maker, in a decision announced as business opened in Tokyo on Friday, disputed the Japan Fair Trade Commission's assertion that it violated antimonopoly laws and stifled competition with rival Advanced Micro Devices Inc. It said the discounts were good for PC shoppers. "We can live with the recommended cease and desist order but we disagree respectfully with their interpretation of the facts," Intel spokesman Chuck Mulloy said, adding that Intel will not change its practices outside of Japan. By complying with the cease and desist order, Intel avoids a legal dispute that could have dragged on for years and harmed its standing in a country where it had $3 billion in sales last year. Intel says it will still be allowed to offer discounts and rebates based on volume purchases and other factors. In contrast, Microsoft Corp., the world's largest software maker, chose to challenge an FTC order against it last year. The case is being reviewed through the FTC's administrative hearing procedure. Intel commands nearly 90 percent of the Japanese market for microprocessors, the central chips in personal computers. It still faces scrutiny from European Union competition investigators looking into complaints from AMD. Europe is a far larger market for Intel, accounting for nearly 25 percent of its $34 billion in sales last year. It is not clear if and how the Japan decision would affect the investigation in Europe, an FTC official said. Industry specialists say Intel's decision is not likely to threaten its market share in Japan and saves its corporate image, which could have been damaged in a prolonged legal process. "This would not mean PC makers are not going to buy Intel chips any more. Given a small market share by AMD, they have no choice but to turn to Intel products," said Yoshihisa Toyosaki, president of research firm iSuppli Japan. "By complying with the FTC order, Intel's presence in the market will be little affected and it can save a lot of image problems."     Continued ...
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