Semiconductor Intel has been waiting for the European Commission to come forth with a ruling, and so it has. The EC has fined Intel the biggest amount in the history of the EC, for hindering competitor AMD to act on the processor market. The EC says Intel has violated fair trade laws and been fined a record size amount of $1.45 billion.
This actually means Intel got away easier than anticipated. The EC could have
fined Intel up to 10% of the company turnover for 2008. That would have resulted
in close to double the actual fine, around $2.9 billion.
EU
commissioner Neelie Kroes show an older Intel CPU
This is still more than twice the sum Microsoft was fined five years ago.
Intel’s case started back in 2000 when AMD reported Intel for using illegal
practices, taking advantage of its dominating position and hindering fair
competition. Intel was said to have paid PC builders to use its chips instead of
AMD’s circuits, but also used illegal rebates for partners that excluded
AMD-based products.
Intel says the ruling is flawed and will appeal to the next instance.
“Intel takes exception to this decision. We believe the decision is wrong
and ignores the reality of a highly competitive microprocessor
market” – Paul Otellini, VP Intel
European Commissioner Neelie Kroes said that the ruling will be
executed immediately and that Intel has three months to pay the record size
fine. American authorities are also investigating Intel’s work methods.
Intel – EC Ruling: Statement by Intel President and CEO Paul
Otellini
AMD – AMD Comments on European Commission Ruling that Intel Violated
EU Law and Harmed Consumers
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