EU Levies $1.45 Billion Fine on Intel
Kaido
13 May 2009
European Union regulators hit Intel Corp. with a €1.06 billion ($1.45 billion) fine -- the largest ever assessed for monopoly abuse -- and called for changes in the way the U.S. company sells the microprocessors at the heart of most of the world's personal computers.
Intel said it would appeal the fine, but Wednesday's decision confirmed the EU's role as jurisdiction of choice for U.S. tech companies seeking redress from larger competitors, even as the new U.S. administration says it plans to get tougher in pursuing monopoly practices.
The European Commission, the EU's executive arm, said Intel broke EU rules by using the threat of withdrawing rebates it offered to large computer manufacturers, its customers, to pressure to them to buy all or most of their chips from Intel rather than rival Advanced Micro Devices Inc.
Intel also paid manufacturers to delay the launch of AMD-based computers and paid a retailer, Media Saturn Holding, to sell only Intel-based machines, the EU said. Media Saturn operates the Media Markt chain in Germany.
"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said Neelie Kroes, the EU's top antitrust regulator. "If we smell that there is something rotten in the state, we act."
Besides the fine, which amounts to almost a fifth of the $7.79 billion in cash on the company's balance sheet, Intel was ordered not to offer the conditional rebates that the Commission deemed problematic. But the regulator left vague how it would police that order.
The Santa Clara, Calif., company had revenue of $37.6 billion in 2008.
The Intel decision in Europe comes as U.S. regulators jettison Bush-era legal guidance that led to narrow scrutiny of monopolists. In a speech Monday, Department of Justice antitrust chief Christine Varney said regulators "cannot sit on the sidelines any longer." That could mean greater convergence with European regulators, who have been more willing to bring antimonopoly actions, including a marathon case against Microsoft Corp. Ms. Varney knows the field well: She represented browser-maker Netscape in the U.S. antitrust prosecution of Microsoft in the 1990s.
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Intel said it would appeal the fine, but Wednesday's decision confirmed the EU's role as jurisdiction of choice for U.S. tech companies seeking redress from larger competitors, even as the new U.S. administration says it plans to get tougher in pursuing monopoly practices.
The European Commission, the EU's executive arm, said Intel broke EU rules by using the threat of withdrawing rebates it offered to large computer manufacturers, its customers, to pressure to them to buy all or most of their chips from Intel rather than rival Advanced Micro Devices Inc.
Intel also paid manufacturers to delay the launch of AMD-based computers and paid a retailer, Media Saturn Holding, to sell only Intel-based machines, the EU said. Media Saturn operates the Media Markt chain in Germany.
"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said Neelie Kroes, the EU's top antitrust regulator. "If we smell that there is something rotten in the state, we act."
Besides the fine, which amounts to almost a fifth of the $7.79 billion in cash on the company's balance sheet, Intel was ordered not to offer the conditional rebates that the Commission deemed problematic. But the regulator left vague how it would police that order.
The Santa Clara, Calif., company had revenue of $37.6 billion in 2008.
The Intel decision in Europe comes as U.S. regulators jettison Bush-era legal guidance that led to narrow scrutiny of monopolists. In a speech Monday, Department of Justice antitrust chief Christine Varney said regulators "cannot sit on the sidelines any longer." That could mean greater convergence with European regulators, who have been more willing to bring antimonopoly actions, including a marathon case against Microsoft Corp. Ms. Varney knows the field well: She represented browser-maker Netscape in the U.S. antitrust prosecution of Microsoft in the 1990s.
More Info Here
Prophet of the Pimps
13 May 2009
Goes into the EU budget so now EU nations have to pay less money for this fiscal year. Same concept as when you are fined for breaking traffic laws.
BeefJeRKy
13 May 2009
The fact is Intel can't eliminate AMD as they own the rights to the x86-64 architecture which Intel uses for its own processors these days. At the same time, Intel created the original x86 instruction set and holds AMD's license for it. So there is a sort of MAD situation for both companies should one take action against the other. We'll see what develops from this.
Dauth
13 May 2009
The first to get 128 bit architecture gets the advantage in a decades time then. Or intel makes its own chips.
BeefJeRKy
13 May 2009
There will be no need for 128 bit architecture in the near future. The 64-bit architecture means that the limit on Virtual Address space is nearly 16 Exabytes : 
We're just barely reaching terabytes in our hard drives let alone computer memory. A brand new instruction set could change this though. I don't know if AMD will create a new set for their Fusion products.
We're just barely reaching terabytes in our hard drives let alone computer memory. A brand new instruction set could change this though. I don't know if AMD will create a new set for their Fusion products.
Major Fuckup
10 Jun 2009
all i can say is that Intel got owned take that money grubbing corporation
WNxMastrefubu
10 Jun 2009
EU > Intel. let it be known 1.45 billion units of ownage. hopefuly US follows suit
RaiDK
11 Jun 2009
Most of you are probably using Intel products in your PC right now, you know 
BeefJeRKy
11 Jun 2009
RaiDK, on 10 Jun 2009, 21:16, said:
Most of you are probably using Intel products in your PC right now, you know
What about AMD? I saved a heap of cash by getting a dragon platform PC now. That said my notebook is Intel based and so is my previous desktop which I handed dowd to my brother as well as the '01 PC which I will likely convert to a server.
