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Intel says it plans to pay the fine and get the money back if it wins on appeal

The largest chipmaker on the planet -- Intel -- has appealed the EU ruling that fined it $1.45 billion for antitrust allegations. The massive fine is the largest ever imposed on a company by the EU and stemmed from what the EU calls abuse of its market dominant position against AMD.

The huge charge forced Intel to report a loss for the second quarter of 2009 after posting numbers that were higher than what Wall Street expected. Intel spokesman Chuck Malloy said, "Our position is that the decision was wrong and we said that from the day it was announced. It was wrong on many levels."

Mulloy also said that Intel plans to pay the fine and if it wins on appeal, it will get the money back from the EU. A spokesman for the European Commission said that the body "is confident that its antitrust decision against Intel is legally watertight."

Reuters quotes Intel spokesman Robert Manetta saying, "We believe the European Commission misinterpreted some evidence and ignored other pieces of evidence."

The fine was levied against Intel after an eight-year investigation concluded. Some analysts believe that the EU ruling could pressure American legal agencies to take action against Intel. Reuters reports that the FTC and the New York attorney general's office are both investigating Intel.



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By uhgotnegum on 7/22/2009 2:08:39 PM , Rating: 2
So...I guess my question is where does this money go once the EU has deposited it?

Layperson logic would suggest that the money would go to boost AMD's market position--or perhaps more accurately, reduce Intel's--seeing as how that was the reason for the fine in the first place. So, is that what will happen, or will the money go to subsidize EU supported agenda items, be distributed to specific countries (based on the impact Intel's no-nos had on their respective economies), be converted to gold coins and dollar bills and be stored in a large "bin-like" building for swimming and diving, or some other thing.

All kidding aside, does anyone know (oh, and I apologize in advance if one or more read links answer my question...if so, bash away)




By BZDTemp on 7/22/2009 2:32:37 PM , Rating: 2
The money goes into the EU budget which then again means it will benefit all the members of the EU eg. the almost 500,000,000 people living in the EU.

It is simply a fine and it is not ear marked in any way and as this was not AMD suing Intel of course AMD does get them.


By Major HooHaa on 8/1/2009 8:38:09 AM , Rating: 2
I get the impression that some parts of the EU politics has been a bit of a gravy train for those who are on it. So the E.U's image isn't squeaky clean.

Also to fine a company that has made money in a time of global financial meltdown, seems a bit silly to me.


By brshoemak on 7/22/2009 8:36:52 PM , Rating: 2
quote:
[The fine will] be converted to gold coins and dollar bills and be stored in a large "bin-like" building for swimming and diving, or some other thing.


To be built in Scotland by Scrooge McDuck of the clan McDuck. Seriously though, has anyone ever compared the fines the EU levies against companies vs. the entire GDP of the EU (or whatever metric they use)? That would be an interesting percentage to say the least. Of course AMD will receive none of it even though they are the "victims" in this situation but not the defendants in this case.


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay

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