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Intel issues response to AMD antitrust complaint

"Innovation, investment, customer focus and great products” behind success

Intel filed its formal response to an antitrust complaint lodged by AMD yesterday, denying that it violated any laws and accusing AMD of trying to shield itself from competition.

In late June, AMD claimed that Intel was illegally using its position as a dominant supplier in the processor industry to exclude AMD from PCs and servers sold by companies such as Dell, HP and Gateway. Intel executives had previously denied any wrongdoing, but filed its formal response to AMD's complaint with the US District Court for the District of Delaware on Thursday.

"Innovation, investment, customer focus and great products have led to Intel's success over the years," said Intel's lawyer Bruce Sewell. "Under the cover of competition law, AMD seeks to shield itself from competition. AMD seeks to impede Intel's ability to lower prices and thereby to allow AMD to charge higher prices," his statement went on to say.

In its 63-page answer, Intel laid out its legal strategy for a case that is expected to drag on for months, or even years. The world's largest chip maker intends to argue that AMD's business decisions, not Intel's conduct, are responsible for its market share in the processor industry. Intel ships a little over 80 percent of all desktop, notebook and server processors, while AMD supplies around 17 percent.

AMD's complaint stated that Intel selectively distributes rebates to PC and server manufacturers who agree to cap their usage of AMD processors at a certain level or exclude AMD entirely from their products. The company believes it can produce documents to back up its allegations, and has begun to subpoena numerous PC industry companies for documents related to processor purchasing.

AMD has said it wants to reach a trial by the end of next year.

"Intel's response is not surprising considering what they are trying to hide, but the facts of illegal monopoly abuse are clear and undeniable," said Thomas McCoy, AMD vice president, in a statement distributed by the company on Thursday. "We look forward to presenting our evidence in front of the entire industry and the entire world. Let's put the truth on the table and let the court decide."

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