Intel Japan to accept FTC cease-and-desist order

April 4, 2005 – The Japanese unit of Intel Corp. told the Fair Trade Commission on Friday that it will accept a cease-and-desist order calling for the chipmaker to stop pressuring domestic PC manufacturers from buying central processors from rival firms, The Nihon Keizai Shimbun reported.

Intel Japan will stop requiring PC makers to use its CPUs in at least 90% of their computers as a condition for receiving rebates and promotional funds, as outlined in the order.

But in a statement released the same day, the company denied the underlying allegations upon which the FTC order was based.

“Our transactions have been proper, and nothing indicates that we were in violation of the Anti-Monopoly Law,” according to the firm.

Intel Japan faced the prospect of the FTC pursuing legal action if it had refused the order.

“Following the order presents no problems for our business,” the chipmaker said. “The launching of legal proceedings could have inconvenienced our business partners.”


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