Accepting the punishment recommended by Japan's fair trade agency, Intel Corp said it would change some of its business practices that critics contend gave the chipmaker an unfair advantage in the personal computer market.
But the world's largest semiconductor company said on Thursday it still disagrees with the accusations and questions how Japan's Fair Trade Commission (FTC) was applying the law.
Intel's response came nearly a month after the agency ruled the company violated Japan's anti-monopoly laws by offering discounts in exchange for exclusive or near-exclusive deals with Japanese computer makers. The investigation was triggered by the complaints of rivals.
Santa Clara, California-based Intel denied the allegations but decided the changes outlined in the agency's proposed cease-and-desist order would not affect its ability to compete in the Japanese marketplace, said Chuck Mulloy, an Intel spokesman.
"We can still compete," he said. "We won't go through the long administrative and legal process, nor will we put our customers through that."
The FTC and Intel will work together to determine the next steps to be taken, agency official Masaru Matsuo said.
"We will continue to monitor to make sure Intel is following the order appropriately," Matsuo said.
When the agency made the allegations on March 8, it said computer makers Hitachi Ltd, Sony Corp, Fujitsu Ltd, Toshiba Corp and NEC Corp were offered discounts on the condition that they either use Intel processors exclusively or limit the use of competitors' chips to 10 percent.
Regulators claimed Intel broke antitrust laws as early as 2002. Under the order, the chipmaker can no longer require customers -- or can customers commit -- to use Intel chips exclusively or near exclusively across product cycles, which typically span three or four months. Intel must now submit a bid for each cycle -- even if a customer wants a deal to run longer, Mulloy said.
The other aspect of the order bars Intel from contractually requiring a customer from using Intel chips 100 percent of the time, though the PC makers can continue to do so if they choose.
Intel is also subject to a fine that Mulloy characterized as a "few thousand dollars."
Provided those requirements are met, Intel can continue to offer discounts.
"We believe the recommendation's cease-and-desist provisions define a workable framework that enables us to continue to provide competitive pricing to our customers, and benefits consumers and the Japanese economy," said Bruce Sewell, Intel's general counsel.
Dave Kroll, an AMD spokesman, called Intel's acceptance a step forward, but criticized the company for refusing to admit its actions were wrong.
"[It's] extremely unfortunate that even when presented with specific and very disturbing findings of deliberate and systematic anticompetitive behavior, Intel refuses to face the fact and admit the harm it caused to competitors and consumers," he said.
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