View Full Version : Intel Fined Record $1.45 Billion in Antitrust Case
Ancient76
05-13-09, 08:48 AM
http://www.nytimes.com/2009/05/14/business/global/14compete.html?_r=3&hp
BRUSSELS — The European Commission on Wednesday fined Intel a record €1.06 billion, or about $1.45 billion, for abusing its dominance in the computer chip market to exclude its only serious rival, Advanced Micro Devices.
Symbolical sum!
Dreamweavernoob
05-13-09, 08:55 AM
ouch indeed.
Poor intel. Cant blame them for taking advantage of a **** competitor.
btw, this isnt a rumour ;)
Butter Bandit
05-13-09, 09:42 AM
What if Intel just refused to pay?
The appeals process in these cases takes years. You wouldn't want to be hanging from a rope waiting for the check to come in.
Who gets the money, AMD? :lol:
Logical
05-13-09, 12:22 PM
Oh the Irony....They talk about the consumers being harmed, yet they fine the best microchip company $1.45 billion. Wouldn't that alone eventually have an impact on consumers ?
Who gets the money, AMD? :lol:
We need more money to EU Farmers! ;)
walterman
05-13-09, 02:22 PM
We need more money to EU Farmers! ;)
It's the EU revenge for the 1:1 $US to Euro conversion ;)
nekrosoft13
05-13-09, 03:28 PM
Who gets the money, AMD? :lol:
nope the EU Cartel
LovingSticky
05-13-09, 03:35 PM
Who gets the money, AMD? :lol:
Pretty much the same bureaucrats that decide about fine and its amount... EU is heading more and more towards socialism (or communism?) :( After totally unjustified and absolutely ridiculous amount Microsoft was fined (about a year ago) there is now another big US company being forced to improve EU budget. Of course, all of this is done for "customer benefits".
methimpikehoses
05-13-09, 03:45 PM
nvm
Pretty much the same bureaucrats that decide about fine and its amount... EU is heading more and more towards socialism (or communism?) :( After totally unjustified and absolutely ridiculous amount Microsoft was fined (about a year ago) there is now another big US company being forced to improve EU budget. Of course, all of this is done for "customer benefits".
They're being investigated by the US Federal Trades Commission as well and Intel was already fined for 20 million in South Korea.
Really hope that at least some of this money goes to AMD(who were the only ones hurt by this).
NONE OF THE MONEY GOES TO AMD. AFTER ALL APPEALS ARE EXHAUSTED, IT GOES INTO EU GOVERNMENT COFFERS.
the money goes into the EU’s central budget, thus reducing the contributions that Member States pay to the EU.
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/235&format=HTML&aged=0&language=EN&guiLanguage=en
Basically it's a government shakedown.
LovingSticky
05-13-09, 04:17 PM
(who were the only ones hurt by this).
How? Do you know a person who wanted to by "AMD inside" computer and couldn't? There are no AMD CPUs on newegg.com?
People do not buy AMD because their CPUs suck (and people know it).
Plain and simple.
With Athlon 64/X2 AMD had close to 20% market share, because it was their first CPU that did not suck big time, but only a bit :)
At the end, customers will pay for this fine, nobody else.
Basically it's a government shakedown.
Exactly :(
LovingSticky
05-13-09, 04:52 PM
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9133060
Otellini "strongly disagrees" with the EC's ruling.
"There is no evidence of consumer harm or competitor harm," he said. "It's just a matter of competition at work, which is something we all want to see, versus something nefarious."
In those contracts, "there is no condition" demanding that OEMs buy exclusively from Intel, Otellini said.
Intel's contracts with customers are "straightforward" and based primarily on volume. "The more you buy, the less you pay," he said.
"In most cases, our customers are larger than Intel. They have more buying power and are incredible negotiators," Otellini said. "So on the face of it, the scenario is absurd."
--
Everything points to one direction only - communistic EU wanting more and more money for itself.
How? Do you know a person who wanted to by "AMD inside" computer and couldn't? There are no AMD CPUs on newegg.com?
People do not buy AMD because their CPUs suck (and people know it).
Plain and simple.
Well I can't speak for everyone and neither can you, but intel was fined on the grounds of anticompetitive practices so AMD must have lost money because of this otherwise this would be unnecessary. Why don't you just ask yourself this - if this doesn't hurt AMD then why do it?
With Athlon 64/X2 AMD had close to 20% market share, because it was their first CPU that did not suck big time, but only a bit :)
At the end, customers will pay for this fine, nobody else.
Intel isn't afraid of abusing its marketing position as many lawsuits already have proven, so letting intel drive AMD into the ground would be the worst thing for the consumer.
Butter Bandit
05-13-09, 05:02 PM
Intel should just say "FU" to the EU, refuse to pay the fines, and shut down all their factories and stores there. If people want Intel stuff, they can order it online.
What REALLY pisses me off, is that Intel will now have to raise their prices and we, the consumers, are just going to end up paying this fine.
Intel should just say "FU" to the EU, refuse to pay the fines, and shut down all their factories and stores there. If people want Intel stuff, they can order it online.
What REALLY pisses me off, is that Intel will now have to raise their prices and we, the consumers, are just going to end up paying this fine.
Why don't you stop guessing and deal with the facts - intel committed a crime and have to pay for it. The US trades commission is investigating Intel as well, so this isn't EU specific(they were fined in South Korea also).
I think your obvious hatred for the EU is keeping you from looking at this objectively.
The microsoft case was retarded, but this at least makes sense.
nekrosoft13
05-13-09, 05:14 PM
NONE OF THE MONEY GOES TO AMD. AFTER ALL APPEALS ARE EXHAUSTED, IT GOES INTO EU GOVERNMENT COFFERS.
the money goes into the EU’s central budget, thus reducing the contributions that Member States pay to the EU.
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/235&format=HTML&aged=0&language=EN&guiLanguage=en
Basically it's a government shakedown.
yap, they need money so they sue
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9133060
Otellini "strongly disagrees" with the EC's ruling.
"There is no evidence of consumer harm or competitor harm," he said. "It's just a matter of competition at work, which is something we all want to see, versus something nefarious."
In those contracts, "there is no condition" demanding that OEMs buy exclusively from Intel, Otellini said.
Intel's contracts with customers are "straightforward" and based primarily on volume. "The more you buy, the less you pay," he said.
"In most cases, our customers are larger than Intel. They have more buying power and are incredible negotiators," Otellini said. "So on the face of it, the scenario is absurd."
--
Everything points to one direction only - communistic EU wanting more and more money for itself.
ROFL what do you expect? Do you see many murderers on trial pleading guilty? :D Of course he's going to deny everything! And why the hatred towards the EU?
Press-release: The European Commission has imposed a fine of €1 060 000 000 on Intel Corporation for violating EC Treaty antitrust rules on the abuse of a dominant market position (Article 82) by engaging in illegal anticompetitive practices to exclude competitors from the market for computer chips called x86 central processing units (CPUs). The Commission has also ordered Intel to cease the illegal practices immediately to the extent that they are still ongoing. Throughout the period October 2002-December 2007, Intel had a dominant position in the worldwide x86 CPU market (at least 70% market share). The Commission found that Intel engaged in two specific forms of illegal practice. First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel. Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs. Such rebates and payments effectively prevented customers - and ultimately consumers - from choosing alternative products. Second, Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors’ x86 CPUs and to limit the sales channels available to these products. The Commission found that these practices constituted abuses of Intel’s dominant position on the x86 CPU market that harmed consumers throughout the EEA. By undermining its competitors’ ability to compete on the merits of their products, Intel’s actions undermined competition and innovation. The Commission will actively monitor Intel’s compliance with this decision. The world market for x86 CPUs is currently worth approximately €22 billion (US$ 30 billion) per year, with Europe accounting for approximately 30% of that.
Competition Commissioner Neelie Kroes said: "Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years. Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated".
The computer manufacturers concerned by Intel's conduct in the Commission’s decision are: Acer, Dell, HP, Lenovo and NEC. The retailer concerned is Media Saturn Holding, owner of the MediaMarkt chain
a12ctic
05-13-09, 05:20 PM
Intel acts like a big bully, regardless of weather or not this ruling is fair or not, Intel should have seen it coming. Its unfortunate that the money isn't given to AMD. Either way, today was a good day for AMD. Their market share is up to 30%, they made gains this quarter, their graphics division is doing amazingly, the PII is competative with all chips other than the rediculously expensive i7 series.
yap, they need money so they sue
This has nothing to do with the EU needing money. :headexplode:
LovingSticky
05-13-09, 05:25 PM
ROFL what do you expect? Do you see many murderers on trial pleading guilty? :D Of course he's going to deny everything! And why the hatred towards the EU?
To remind you: Neelie Kroes is the same b*tch that is responsible for "Windows N" editions, which nobody buys ;)
InqWoN1776
05-13-09, 05:57 PM
A good number of people are talking about the EU abusing American companies like its the same argument... It is not. Yea, I disagree with what the EU's abuse.... but at the same time Intel is guilty. It doesn't take a rocket scientist to figure it out. When AMD actually does have products that are on par or slightly better somehow they never end up gaining much market share. It was very aggravating to watch Intel do this during the P4 days when they should have been losing substantial market share to AMD.
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