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Intel still maintains its innocence

Intel and Microsoft are two of the largest and most dominant companies in the technology industry. Both of the companies have also been accused of antitrust violations over the years and have at times been found guilty of the accusations.

Intel has been battling EU regulators over antitrust allegations claiming it abused it dominant market position to prevent its main rival, AMD, from gaining traction in the marketplace. The allegations claim that Intel was illegally paying computer makers to postpone or cancel the launch of products using AMD processors according to insiders close to the case.

Reuters reports that EU regulators are set to decide on Wednesday to fine Intel and order it to change its business practices. One EU executive claimed that Intel has practiced "naked restrictions" to competition in the market.

There is no indication at this time on how large the fine assessed against Intel might be; the largest fine ever assessed by the commission for abuse of a dominant position in the marketplace was the $655 million fine levied against Microsoft in March of 2004.

According to sources cited by Reuters, the EU commission is expected to rule that Intel committed two violations. One of the violations alleges that Intel paid computer makers to delay or outright scrap products using AMD processors. Intel is also said to offer other inducements to computer makers to get them to sell Intel only machines.

Intel allegedly set the percentages of its chips that PC makers had to use. NEC was told that 20% of its notebooks could use AMD CPUs according to sources. The source claimed that all Lenovo notebooks had to use Intel chips and many Dell products had to as well. HP is claimed to have been required to offer 95% of its notebooks with Intel processors. Intel had no comment on the claims and still maintains it did nothing wrong.



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The EU is behaving like a monopoly.
By Smilin on 5/11/2009 10:03:12 AM , Rating: 1
Seriously. The EU is beginning to behave like an *abusive* monopoly.

They represent the sole access to the product known as the "European Market". If companies wish to "buy" this product they have to put up with the rules of the monopoly holder.

I'm sure companies are getting fed up with the intrusive oversight, regulation, unreasonable requests and outright financial blackmail but what are they going to do? They can't take their ball and go home. Nobody else is "selling" the European Market.




RE: The EU is behaving like a monopoly.
By tshen83 on 5/11/2009 10:15:17 AM , Rating: 1
The EU is not a monopoly but it acts as a big ass workers union almost. To protect the relatively high end jobs in Dresden fab, it will no doubt side with AMD, with bias.

Intel should just kill AMD right now for god's sake. There is no fun competing with a weakling who will cut prices belong marginal cost just to get a sympathetic antitrust ruling in their own backyard.


RE: The EU is behaving like a monopoly.
By Frallan on 5/11/09, Rating: 0
By Smilin on 5/11/2009 1:35:59 PM , Rating: 1
I didn't consider that a troll.


RE: The EU is behaving like a monopoly.
By omnicronx on 5/11/2009 10:36:06 AM , Rating: 5
quote:
To protect the relatively high end jobs in Dresden fab, it will no doubt side with AMD, with bias.
No more bias than the US pretty much not doing anything about Intel. The US protects its big market players just as much as the EU, so please do not make it out as though Intel is getting the raw deal here. Anyone thinking this is the case does not know the facts.

Dell's investors even suid Dell over this very matter, for not properly disclosing the rebates received from Intel which resulted in inflated profits.

It is illegal to use your market position in that fashion, plain and simple. How they got away with it so many times and for so long is beyond me.


RE: The EU is behaving like a monopoly.
By tshen83 on 5/11/2009 10:44:23 AM , Rating: 2
"No more bias than the US pretty much not doing anything about Intel"

So you agree that EU is biased in this case then?

Your argument is this: if US is biased by not doing anything against Intel, the EU should be able to do the same thing for AMD and give Intel a punch?

That's the mentality of a 3 year old.


RE: The EU is behaving like a monopoly.
By omnicronx on 5/11/2009 11:12:58 AM , Rating: 4
quote:
So you agree that EU is biased in this case then?
I'm not saying they will be biased in their findings, what I am saying is that the EU has a responsibility to protect its assets and as such this case was far more likely to see the light of day in Europe than in the US. (thanks for taking what I said out of context though, I clearly said no more, as in the US is protecting their assets, not that the EU was laying charges based only on the fact that AMD is entrenched in Germany i.e tit for tat)

I hope the EU goes after Intel with everything they have, and as if they are fined, it is more than likely that a successful AMD suit will follow. Personally I find it ridiculous this has taken so long, there are multiple sources confirming the findings against Intel, they deleted emails in which the court had ordered they produce, and it was pretty clear that Intel was retaining market dominance in a time in which they had inferior products.

Sure they had the business market on their side, as it is hard to get businesses to change from the tried tested and true, but the numbers still do not add up.


RE: The EU is behaving like a monopoly.
By tshen83 on 5/11/2009 11:28:52 AM , Rating: 1
I don't know why EU feels like they should be responsible for a battle between two "US" companies. If the Europeans are so "pro AMD", why don't they just buy AMD processors?
Instead, they are buying Intel processors while trying to fine Intel to support the AMD employment base in Dresden.

As I said, Intel should end AMD's pathetic life right now. Then the Europeans would have no choice but to buy Intel processors. :) That would be a great day to shut the EU up when they type their "anti-Intel" lawsuit documents on a Intel PC running Microsoft Windows and Office.

I hope you will appreciate the irony.


RE: The EU is behaving like a monopoly.
By omnicronx on 5/11/2009 11:39:27 AM , Rating: 4
quote:
I don't know why EU feels like they should be responsible for a battle between two "US" companies.
Although originally US based, AMD is no longer really a US company, and is heavily entrenched in Dresden Germany.
quote:
I hope you will appreciate the irony.
The only irony here is that you think Intel market domination is a good thing.


RE: The EU is behaving like a monopoly.
By SandmanWN on 5/11/2009 12:06:31 PM , Rating: 2
LOL nice reasoning, except AMD is US based and that fab in Dresden is now property of the UAE. Yeah thats right, United Arab Emirates. German or EU it is not.


RE: The EU is behaving like a monopoly.
By tshen83 on 5/11/2009 12:08:13 PM , Rating: 2
UAE thinks that they own the Dresden fab. It is a pipe dream.

The US based AMD has controlling interest over it. As soon as it loses control of the Fab(which I think eventually it will), the Fab would lose the x86 license, and therefore lose over 90% of its valuation.

Nice try, but not good enough.


RE: The EU is behaving like a monopoly.
By SandmanWN on 5/11/2009 12:17:58 PM , Rating: 2
you think that would matter to them? They would continue operating in the arab nations and do so with impunity as no one will be able to force them not to without fear of death. Licensing is about a big a joke to these people as it is to the Chinese.


By tshen83 on 5/11/2009 12:20:16 PM , Rating: 1
So you are saying that after Intel revokes the x86 license, the fucking Arabs would move the Fab to an Arab nation and start pumping out outdated Shanghai Opteron designs that are already left in the dust?

There would be ramifications for stealing CPU designs and illegally manufacturing it.


By omnicronx on 5/11/2009 10:27:37 AM , Rating: 2
While I do agree that the EU has overstepped their boundaries in the past, they have the right to regulate their own market.

That being said, I think this should have gone down a long time ago, not only in the EU but in the US. They are being protected in the US because they are a true US company. If the positions were reversed and it was a European company, we would have seen multiple antitrust cases against them in the US.

While I do not agree with other EU antitrust cases (such as the entire browser fiasco), I 100% agree here. Intel is obviously in the wrong, you don't get multiple companies from multiple sources calling foul if there was not a thread of truth to it.

Best part is Intel is not really denying anything, from what I gather, it seems like they are denying what they were doing was illegal in the first place, not that they did not perform said acts.


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