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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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RE: not sure why
By LRonaldHubbs on 5/11/2009 10:16:26 AM , Rating: 2
It seems everybody is getting a bailout these days. EU's bailout strategy is to take money from American companies. Quite the strategy they have there...I'd love to see Intel tell them to shove it.


RE: not sure why
By BZDTemp on 5/11/2009 11:31:01 AM , Rating: 2
LOL

The EU does not need a bailout.

It is far from having to resort to things like selling the whole place to China or the oil nations of the Middle east. There have not even the need to print money like it was wall paper :-)

I think it is sad to see every thread about EU trying to make big companies compete fairly become a EU is grabbing money from the US. In reality the EU is doing what the US should be doing and what the US was doing until Bush put a stop to it.

This will sound rude but honestly. Try to read little about what the EU is instead of just resorting to an automatic misunderstood us vs. them reaction.


RE: not sure why
By LRonaldHubbs on 5/11/2009 11:42:49 AM , Rating: 2
If the EU was concerned about fair competition then it would force Intel to pay money to competitors as reparation for past behavior. In reality, EU is collecting money for itself and AMD will not see a penny of it. Complete BS is what this is, just as the Microsoft payouts have been.

I used the term bailout jokingly, simply because they are taking effectively free (and undeserved) money in a time of economic hardship.


RE: not sure why
By omnicronx on 5/11/2009 11:51:49 AM , Rating: 2
quote:
If the EU was concerned about fair competition then it would force Intel to pay money to competitors as reparation for past behavior. In reality, EU is collecting money for itself and AMD will not see a penny of it. Complete BS is what this is, just as the Microsoft payouts have been.
Talk about a slippery slope! The reason this has not been done is because IT IS NOT LEGAL! A government panel cannot fine a company and give the compensation to another company, this is what the courts are for.

That being said it is the government responsibility to enforce the law of the land. And in both the EU and the US, the only way to do this is to fine companies to the point in which it is no longer profitable to continue their illegal practices.


RE: not sure why
By michael67 on 5/11/2009 11:55:11 AM , Rating: 3
Dutch beer brewer Heineken, did basically the same thing as Intel did on its home marked.

They got a fine of 100m from the EU, and Holland only got 17m citizen of the 500m in the hole EU, if you would calculate that fine to the hole EU that would be then a fine of 3b.

recently 4 glass makers got a 0.5b fine for cartel forming (2 from the EU and 2 from JP)

So don't think they just hard on US company,s they are just as tough on EU company's


RE: not sure why
By Master Kenobi (blog) on 5/12/2009 8:03:45 AM , Rating: 3
The EU in general is a mistake. I'm sure many companies across the globe would like to see if go away.


RE: not sure why
By BZDTemp on 5/13/2009 9:21:19 AM , Rating: 2
EU is a great thing. Here are some of the positives.

- Peace. The economic dependency and stability in Europe is much to do with the EU.

- Prosperity. Free trade and free movement of people inside the EU makes for less red tape.

- Common standards on most everything from safety, environment to roaming prices. Good for consumers especially in the countries less advanced in those areas and good for business since one approval = approval for all EU countries.

- Big companies can not just hide behind the borders of one country. Or pull tricks like Intel :-)

On the downside it is difficult when 500.000.000 people tries to decide things so many things take time and much compromising is needed.


"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer

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