The Japan Fair Trade Commission recommends a processor manufacturer to eliminate exclusivity conditions imposed on five Japanese PC manufacturers for receiving price rebates and advertising subsidies (Intel)

On March 8, 2005, the Fair Trade Commission of Japan ("JFTC") challenged certain rebate and marketing programs of Intel Corp.’s Japanese subsidiary, Intel K.K., and recommended in a proposed order that Intel eliminate certain exclusivity conditions imposed on five Japanese PC manufacturers receiving price rebates and advertising subsidies for purchases of Intel’s microprocessors. Key Implications The key implications of the JFTC’s challenge to Intel’s conduct are: The case is a further sign of the growing level of antitrust enforcement in Japan. During the past year, for example, the JFTC has brought enforcement actions against prominent firms, including U.S. companies, with global operations like Microsoft, NTT East, Citibank, J-Phone (Vodafone), Twentieth Century Fox and now Intel.

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Kei Amemiya, Kentaro Hirayama, The Japan Fair Trade Commission recommends a processor manufacturer to eliminate exclusivity conditions imposed on five Japanese PC manufacturers for receiving price rebates and advertising subsidies (Intel), 8 March 2005, e-Competitions Bulletin Japan Antitrust, Art. N° 70065

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