The Fair Trade Commission (JFTC) began investigating Intel last year, launching a series of raids on company offices in April.
On Tuesday, after 11 months of investigation, the watchdog accused the company of behaving in an anti-competitive manner by offering rebates and discounts to five Japanese PC makers on condition that they stop or restrict the number of chips they bought from Intel's rivals.
According to one of those rivals, California based Advanced Micro Devices, the combined market share of AMD and competitor Transmeta fell from 24% in 2002 to 11% in 2003, as a result of Intel's actions.
"The JFTC found that Intel illegally manipulated the market to exclude competition, hurting PC users around the world," said Thomas McCoy, AMD executive vice president, legal affairs and chief administrative officer. "Using market power illegally to limit innovation and, more importantly, consumers' freedom to choose, cannot be tolerated. We encourage governments around the globe to ensure that their markets are not being harmed as well."
Responding to the Recommendation, Intel affirmed its belief that the company's business practices were both fair and lawful. But the company also expressed concern at the reasoning behind the Recommendation.
"One of the core principles of competition policy is the notion that such policies should be based on sound economics," said Bruce Sewell, vice president and general counsel for Intel. "There is a broad consensus that competition regulators should only intervene where there is evidence of harm to consumers. It is apparent the JFTC's Recommendation did not sufficiently weigh these important principles."
If Intel does not accept the JFTC's findings, the watchdog could bring legal proceedings.
A separate European Commission investigation into allegations that Intel negotiated anti-competitive loyalty rebates and exclusive distribution agreements with PC manufacturers and retailers is ongoing.