Feeds

Koreans conduct 'dawn raid' of Intel offices

Over tea and cookies

Boost IT visibility and business value

AMD vs Intel South Korean Fair Trade Commission (KFTC) officials today mounted raids on Intel's local offices, as part of the authority's investigation into allegations that the giant abused its leadership position in the chip market, the Korea Economic Times newspaper reported today.

Intel spokesman Chuck Mulloy confirmed that the Korean officials did pay an "unscheduled" visit to the company's offices in Seoul. The move was part of an ongoing investigation into Intel's business practices that started in June of 2005.

"Intel is a very successful company, and it is not unusual for us to come under scrutiny," Mulloy told Reg Hardware. "We believe our business practices are fair and lawful."

The KFTC launched its probe two months after asking Intel to submit documents pertaining to the manufacturer's relationships with South Korean PC companies. In particular, the KFTC said at the time, it wanted information concerning "marketing and rebate programmes" run by the chip giant locally.

AMD - which is currently engaged in legal action against its arch-rival and can't seem to resist any opportunity to claim it's all for free and open competition, the better to imply its arch-rival isn't - was quick to claim the raids mark an intensification of the investigation. There's no smoke without fire, the company said - the FTC wouldn't raid the company if it didn't believe it would find evidence of possible antitrust abuses.

To this point, AMD used the phrases "dawn raid" and "raid" close to ten times in its press release describing the KFTC's actions. Our understanding of the way Korean regulators operate has such a "raid" taking place over tea and snacks.

AMD's legal action against Intel was launched in Japan in June 2005, three months after a probe conducted by Japan's own Fair Trade Commission (JFTC) ruled Intel guilty of deliberately trying to limit AMD's share of the Japanese CPU market by imposing purchasing restrictions on five of the country's biggest PC makers. In return for marketing assistance, the JFTC said, Intel forced at least one vendor to buy all its processors from the chip giant.

AMD alleged the JFTC's raids on Intel's Japanese offices furnished investigators with the evidence they needed to reach their verdict. It hopes the South Korean raids will achieve the same thing.

That said, European Commission officials mounted similar raids on Intel sites in Germany and the UK back in July 2005, but they have yet to announce any formal conclusion to their own probe, one way or the other.

AMD's success throughout 2005 in both the PC and server markets raises some questions about how difficult competing against Intel really is. ®

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.