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Intel Complies To JTFC Order

Intel would accept the punishment recommended by Japan’s fair trade commission and change some business practices but disagrees with the commission’s accusations. Intel’s response came nearly a month after the Japan Fair Trade Commission ruled Intel’s Japanese subsidiary violated anti-monopoly laws by offering discounts in exchange for exclusive or near-exclusive deals with Japanese computer makers. The investigation was triggered by complaints from rivals. Under the commission order, Intel no longer can require customers use, or make customers commit to using, Intel chips exclusively or near exclusively across product cycles. Intel must now submit a bid for each cycle even if a customer wants a deal to run longer. The order also bars Intel from contractually requiring a customer from using Intel chips 100 percent of the time, though PC makers can continue to do so if they choose. Intel must also pay a fine of a few thousand dollars.

Intel would accept the punishment recommended by Japan’s fair trade commission and change some business practices but disagrees with the commission’s accusations. Intel’s response came nearly a month after the Japan Fair Trade Commission ruled Intel’s Japanese subsidiary violated anti-monopoly laws by offering discounts in exchange for exclusive or near-exclusive deals with Japanese computer makers. The investigation was triggered by complaints from rivals. Under the commission order, Intel no longer can require customers use, or make customers commit to using, Intel chips exclusively or near exclusively across product cycles. Intel must now submit a bid for each cycle even if a customer wants a deal to run longer. The order also bars Intel from contractually requiring a customer from using Intel chips 100 percent of the time, though PC makers can continue to do so if they choose. Intel must also pay a fine of a few thousand dollars.

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