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Intel fires back in antitrust dispute over foreign claims

Tom Krazit Former Staff writer, CNET News
Tom Krazit writes about the ever-expanding world of Google, as the most prominent company on the Internet defends its search juggernaut while expanding into nearly anything it thinks possible. He has previously written about Apple, the traditional PC industry, and chip companies. E-mail Tom.
Tom Krazit
2 min read

Intel has submitted its arguments in a key debate over the scope of Advanced Micro Devices' antitrust lawsuit, which accuses the larger chip maker of abusing monopoly power.

Last month, asking Judge Joseph Farnan to reconsider a decision barring AMD from using allegations of wrongdoing that occurred outside the U.S. The company is trying to prove that Intel used its heft as the dominant supplier of PC and server processors to lock AMD out of certain accounts through intimidation and the selective distribution of rebates, charges that Intel denies.

Judge Farnan ordered AMD to stick to allegations that happened inside the U.S., which was seen as a disappointment for the plaintiff. Other governmental organzations, such as the European Union, have aggressively investigated Intel's conduct in their regions. Also, the majority of any chipmaker's customers are in Asia, home to the motherboard industry and contract manufacturers.

AMD would at least like to go after documents that could be evidence of Intel's conduct, but Intel says it doesn't matter: the Sherman Act prevents AMD from using evidence gathered outside the U.S. that doesn't directly impact domestic commerce, it said in its 36-page response to AMD's motion. AMD is saying that Intel's foreign conduct hurt its sales and forced it to stop making processors at its Austin, Texas, facility, but Intel argues that there are several factors and steps that contributed to that decision.

A "special master" appointed by the judge gets to decide this skirmish. AMD had originally hoping to bring this thing to trial by now, but now it's looking more like 2009.