Advanced Micro Devices Conference Call on Antitrust Complaint Against Intel in U.S. Federal District Court - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Ladies and gentlemen, thank you for standing by and welcome to the AMD conference call. At this time all participants are in a listen-only mode. Later we will have a question-and-answer session. Instructions will be given at that time. (OPERATOR INSTRUCTIONS) As a reminder, today's call is being recorded.

I would now like to turn the conference over to your host, Director of Global Communications at AMD, Mr. David Kroll. Please go ahead.

DAVID KROLL, DIRECTOR, GLOBAL COMMUNICATIONS, ADVANCED MICRO DEVICES, INC.: Welcome and thank you for joining us today. We're here to announce that AMD yesterday filed a 48-page antitrust complaint against Intel Corporation in U.S. Federal District Court in Delaware. Our participants today are Hector Ruiz, Chairman of the Board, president, CEO; Tom McCoy, Executive Vice President for Legal Affairs and Chief Administrative Officer. And also with us is Chuck Diamond, partner at O'Melveny & Myers and our lead outside legal counsel.

For more information on our announcement, please visit AMD.com/breakfree. Now I would like to introduce AMD's Chairman, President, and CEO, Hector Ruiz, to deliver opening comments.

DR. HECTOR RUIZ: Thank you, Dave. First, let me thank you all for being here today. Over the past several years, AMD has truly become a leader in innovation by bringing affordable computing to people around the world, creating the most powerful computing solutions and forging the pathway to better, more innovative computing. Through the introduction of 64-bit technology and dual-core processors to our state-of-the-art 300 millimeter fabrication plant about to become online and our reputation as an industry leader is now unquestioned. And our business is strong.

Chosen for its superior performance, efficiency and price, AMD products are now used by over half of Fortune 100 companies and the world's top entertainers and creative minds. Industry analysts and leading technology and business publications across the globe have recognized and acclaimed AMD's innovation leadership. We are a customer driven company. We make products that computer makers need, that consumers want, and that businesses demand.

It is on the foundation of our technology leadership that we set out to remedy the imbalance in the microprocessor sector that has been ignored for far too long. That is why AMD has filed a 48-page antitrust complaint against Intel in the Federal District Court of Delaware for violations of the Sherman Antitrust Act and the California Unfair Competition Law. We have posted the full text of our complaint at a special website, www.AMD.COM/break free. I hope you will read it and learn what many industry insiders and observers have known for years. Intel uses its monopoly position to block competition by hurting its own customers and the industry at large.

Governments around the world are shining light on Intel's actions and the threats they pose. Just this spring, the Japanese government recommended Intel be sanctioned for its exclusionary misconduct. Intel did not contest the charges. And the European Commission is currently investigating Intel for similar possible antitrust violations. Earned success is one thing. Illegal maintenance of a monopoly is quite another. History shows that monopolies limit choice, stifle innovation, and harm consumers. Monopolies do what is good for them, not their customers. Intel is a monopoly pure and simple and it is time the industry broke free from their chains.

Now let me invite my colleague, Tom McCoy, to discuss the specifics of the litigation. Tom is AMD's Executive Vice President, Legal Affairs and Chief Administrative Officer who will be heading up these legal proceedings on our behalf.

TOM MCCOY, EVP, LEGAL AFFAIRS & CHIEF ADMINISTRATIVE OFFICER, ADVANCED MICRO DEVICES, INC.: Thank you, Hector, and good morning. As Hector mentioned, AMD has filed a 48-page complaint against Intel for its ongoing elicit and anticompetitive business practices. Using coercion, intimidation, and threats of retaliation, Intel harms its own customers in an effort to crush any competition. Without fair and open competition, customers are forced to cap their purchases from AMD and consumers are forced to pay artificially high monopoly prices. And Intel's illegal monopoly is hurting the entire industry.

Read our complaint. It is all there; 48 pages of detail naming 38 companies, analyzing seven separate forms of illegality spread across three continents and it all adds up to one massive global antitrust violation. The recent findings by the Japanese Fair Trade Commission only confirm what the IT industry knows all too well. Intel is using illegal sales tactics and pricing mechanisms to avoid a fair fight that might risk its monopoly margins and these harms are global.

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