To print: Click here or Select File and then Print from your browser's menu

This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://management.silicon.com/government/0,39024677,39162781,00.htm

Judge junks chunk of AMD vs Intel
Antitrusts it...

By Reuters

Published: Wednesday 27 September 2006

A federal judge has dismissed a large portion of AMD's antitrust lawsuit against Intel, saying that US law does not cover many of AMD's claims.

The decision by Judge Joseph Farnan of the US District Court in Delaware follows several quarters in which AMD, the world's number two chipmaker, had taken business from its larger rival.

AMD accused Intel in its 2005 lawsuit of building up a dominant market share for some microprocessors by engaging in anti-competitive conduct, including forcing major customers not to buy AMD products.

Intel countered that AMD was seeking damages mostly for lost sales of German-made, Asian-assembled microprocessors to foreign customers.

It called such damages "a foreign antitrust injury (if it is one at all) for which the US courts cannot provide relief", according to a 2 May court filing.

Farnan accepted this argument, concluding he lacked jurisdiction over AMD's claims based on conduct and harm that took place outside the US.

Farnan wrote in an 18-page opinion: "AMD has not demonstrated that the alleged foreign conduct of Intel has direct, substantial and foreseeable effects in the United States which gives rise to its claim."

At best, he said AMD's allegations described activity that might have had "ripple effects" in the US but not enough to give rise to an antitrust claim.

An Intel spokesman said: "We're pleased that the judge appears to have agreed with our view of the legal issues and the argument we made." He declined further comment pending a Wednesday conference with the judge.

An AMD spokesman said: "Notwithstanding the judge's ruling today, Intel cannot escape antitrust scrutiny for its conduct wherever in the world it occurs. As this US litigation is joined by global antitrust investigations, it is clear that Intel cannot escape the consequences of its illegal monopoly abuses."