Claims limited to domestic competition in Intel suit

March 12, 2007 – A federal judge has limited the scope of a class-action lawsuit filed against Intel Corp., which alleges that the company raised computer prices through anticompetitive conduct.

According to the order from U.S. District Court Judge Joseph Farnan released on Thursday, March 8, buyers of computers represented in the class-action suit can only seek damages for sales that took place in the United States.

Farnan’s decision mirrors a ruling he made in September in a companion case against the company filed by chip rival Advanced Micro Devices Inc. of Sunnyvale. In his September ruling, Farnan concluded that AMD’s claims of illegal monopolistic practices abroad were also outside his jurisdiction.

In his more recent ruling, Farnan also said he lacked jurisdiction on claims for damages that took place abroad.

“It does reduce the scope of the case,” comments Intel spokesman Chuck Mulloy. The decision, however, does permit plaintiffs in the case — as well as AMD — to seek documents and evidence worldwide.

In the September ruling and in the ruling signed last week, Intel had filed motions asking for damages in the cases to be limited domestically. AMD has alleged that Intel pushed customers, through the use of rebates and other incentives, not to buy AMD chips. More recent controversy ensued as a result of Intel’s claim that mistakes resulted in some internal email correspondence required for the case to not be retained.


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