Intel, AMD spar in court

WASHINGTON (Reuters) - The U.S. Supreme Court said on Monday it would decide an appeal by Intel Corp., the world's largest chipmaker, in a dispute with rival Advanced Micro Devices Inc. on whether Intel must produce documents in this country for use in the European Union.

Intel asked the justices to review a ruling by a U.S. appeals court in San Francisco that could require the company to produce documents from an old antitrust case for use by the European Commission as it investigates AMD's complaint that Intel has abused its dominant market power in Europe.

The Supreme Court will hear arguments in the case next year, with a ruling due by the end of June.

AMD had asked a federal court in California to require Intel to produce the documents.

But the judge rejected the request because the European Commission's ongoing investigation was not a "proceeding" as required under the federal law governing production of documents for use by a foreign or international tribunal.

The appeals court disagreed, saying the proceeding was at a minimum one leading to quasi-judicial proceedings. It sent the case back to the judge to decide the merits of AMD's request for documents.

Intel appealed to the Supreme Court. It said the case presented issues of "international significance" warranting review.

A private party like AMD should not be able to demand documents that the foreign tribunal itself does not authorize, Intel argued.

The European Commission supported Intel. It said the appeals court ruling "fundamentally misconstrues the nature of the European Commission" and may undermine its law enforcement mission.

The U.S. Justice Department and business groups like the Chamber of Commerce and the National Association of Manufacturers also supported Intel.

AMD initially urged the high court to reject the appeal. The company said Intel and its supporters had engaged in "breathless hyperbole," and called Intel's challenge "speculative and premature" because the judge has yet to decide whether the company must turn over the documents.

But after the Justice Department's solicitor general recommended review, AMD changed its position and filed a new brief saying the appeal should be granted and the appeals court's decision should be upheld by the justices.

© Reuters