Intel today responded angrily to AMD allegations that it has systematically abused its dominant position in the global processor business to drive up prices and stifle competition. 

The denial follows a 48-page complaint filed by AMD yesterday in Delaware, where both companies are registered.

The move prompted an unusually forthright statement from Intel, indicating that it will fight the case tooth and nail.

"We strongly disagree with AMD's complaints about the business practices of Intel and its customers," a company spokesman told vnunet.com.

"Intel believes in competing fairly and that consumers benefit from rigorous competition. AMD has chosen yet again to complain to a court about Intel's success with a legal case full of excuses and speculation.

"Intel will vigorously contest AMD's latest complaints and is committed to winning this case in court."

At last night's AMD press conference Thomas McCoy, AMD's chief administrative officer, gave more details of the allegations and AMD's plans.

He referred to the case as a "massive global anti-trust action" and claimed that AMD is being locked out by Intel despite having superior processing technology.

"100 per cent exclusive contracts are no coincidence. Not having access to Dell, Sony and Toshiba bars us from a third of the world's laptop market and half the US desktop market," said McCoy.

"Consumers are harmed because they are overcharged and denied the fundamental right of the free market: the right to choose for themselves."

Charles P Diamond, AMD's lead outside counsel, stated that it took 18 months to get Microsoft's recent antitrust case to court and that AMD is working on the same timescale.

He added that AMD would be asking for treble damages if successful, but claimed that the case is not about money but about "getting rid of the iron grip Intel has held its customers in".

McCoy also suggested that Intel's recent case with the Japanese Fair Trade Commission (JFTC) is a proof point for AMD, although he denied that it was an outright trigger for the case.

This too has drawn a stout defence from Intel. "AMD's statements on recent actions of the JFTC are inaccurate," the Intel spokesman told vnunet.com.

"Intel agreed to abide by recommendations from the JFTC on business practices to resolve the matter and get on with business. When doing so Intel did not admit, and in fact disagreed with, the agency's alleged facts and violation of law."

The JFTC issued a warning to Intel on its activities in Japan, including setting up exclusive deals with computer manufacturers to exclude the competition. The report came after an 11-month investigation from the Japanese authorities.