CCIA Response to Intel Lawsuit Against Korean Fair Trade Commission

BY CCIA Staff
December 10, 2008

The Computer & Communications Industry Association is offering the following statement in response to several news reports that Intel is now suing the Korean Fair Trade Commission. The KFTC found Intel’s practice of offering rebates tied to customers not buying from competitor Advanced Micro Devices illegal. It fined the biggest microprocessor producer 26 billion won in June, which is about $18 million. Intel is claiming the KFTC made mistakes in reaching its decision.

The European Commission is also investigating Intel’s rebate practices and Intel last month criticized that investigation.

The following statement can be attributed to CCIA President & CEO Ed Black:

“After losing on the merits of the case, Intel is now attacking legitimate government agencies which carefully weighed the balance of the evidence before finding this business practice violated antitrust laws. It is disappointing they are criticizing the investigators, rather than taking responsibility for the actions that have led to investigations around the world.

In so many ways Intel is an excellent, innovative company. That’s why it is disappointing they continue to insist on using business practices, which so many official bodies and international experts believe are unfair or illegal. We urge them to modify their questionable practices and compete on the merits of their products. If they do, we believe they will be a continually effective competitor in the microprocessor marketplace.”

The European Commission and the U.S. Federal Trade Commission are still Investigating the charges. Intel says it filed the suit to demonstrate that its business practices are fair and lawful.

“If they seriously believe that and want to prove it, we would encourage them to release the record on these cases to the media and the public.”

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