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EU to investigate Intel-McAfee deal

EU to investigate Intel-McAfee deal

Intel's planned purchase of security specialist McAfee is to be investigated by the EU.

Intel's big buyout of security specialist McAfee has come under attack with reports that the European Union is launching an investigation into the deal.

Originally announced back in August, the deal saw chip giant Intel offer to buy security specialist McAfee for a massive $7.68 billion, with Paul Otellini predicting that 'security will join [energy-efficient performance and connectivity] as a third pillar of what people demand from all computing experiences,' and declaring that Intel would be at the forefront of that wave.

Otellini's plans look in jeopardy, however, with the news that the European Union is to launch an investigation into Intel's purchase of McAfee amid fears that it could result in McAfee becoming the sole provider of security functionality for Intel's chips - a self-driven monopoly of the type that the EU is pledged to prevent.

In coverage by The Wall Street Journal, the driving force for an EU investigation into the Intel-McAfee deal is explained to be concerns that McAfee, which Intel plans to continue to operate as a wholly owned but separate commercial entity, would be the only company allowed to bid to provide the security features planned for Intel's future platforms - such as the anti-theft capabilities that are included in the company's Sandy Bridge platform.

With Intel having been in trouble with the EU before, resulting in a record-breaking £948 million fine, investors will be watching the outcome of the investigation closely.

Do you think the EU is right to be concerned about Intel's purchase of McAfee, or should the company be left alone to buy companies as it sees fit? Share your thoughts over in the forums.

12 Comments

Discuss in the forums Reply
Mattmc91 22nd December 2010, 10:09 Quote
Understandable for them to investigate that regarding Sandy Bridge locks.
SlowMotionSuicide 22nd December 2010, 11:16 Quote
Let's face it, nobody gives a **** about EU anyway. Let us all hope Intel doesn't pull out of European market since we're funding a few overeager EU officials poking a finger in their schemes.
Unknownsock 22nd December 2010, 12:12 Quote
Does the EU spend there time doing anything but this?
thelaw 22nd December 2010, 12:20 Quote
With a gentle prod of the EU officials from Norton no doubt...
RichCreedy 22nd December 2010, 14:21 Quote
can't they just leave well alone
eddtox 22nd December 2010, 15:15 Quote
Wow, quite a few negative comments, it seems people don't care much about monopolies these days.
jrs77 22nd December 2010, 15:22 Quote
Quote:
Originally Posted by SlowMotionSuicide
Let's face it, nobody gives a **** about EU anyway. Let us all hope Intel doesn't pull out of European market since we're funding a few overeager EU officials poking a finger in their schemes.

Europe without the EU would be economically dead within the next 25 years. Instead of less, the european countries need to work even more closely together to survive in the worlds economy.

Finland for example would've allready lost 50% of their bigger companies to russian investors without the EU and the Euro.

I think it's ok that the EU looks into things like this, as this is actually nothing else then what the USA or China are doing to protect their economy. The only difference is, that the EU doesn't make such things behind closed doors but in public.
SaNdCrAwLeR 22nd December 2010, 16:20 Quote
Quote:
Originally Posted by eddtox
Wow, quite a few negative comments, it seems people don't care much about monopolies these days.

how about investigating Apple's Monopolies?

oh wait, it's not a huge giant company, either that or every one of em uses an iPhone T_T
eddtox 22nd December 2010, 17:20 Quote
Huh?
jrs77 22nd December 2010, 18:01 Quote
Quote:
Originally Posted by SaNdCrAwLeR
how about investigating Apple's Monopolies?

oh wait, it's not a huge giant company, either that or every one of em uses an iPhone T_T

Apple doesn't produce their own CPUs, TFTs, touchscreens, or whatever... They buy parts from other bigger companies and add their own flavour to it.
Additionally, the market share of Apple iOS is somewhere around 25% in the mobile-market only, e.g. far from being a monopoly. Apples market share for PC-systems, including the iPad is only 10%, with HP and Dell having 25% each.

That's hardly a monopoly for Apple there...

And then... they made it possible for their customers to install Windows or Linux on their PCs with bootcamp, getting rid of their own monopoly they had with MacOS on their systems.

And know look at intel... they have a market share of 80% in processors used in PC-systems. They allready have a monopoly and that's why the EU watches them closely, so that they don't do anything to that would drive current competitors out of the market.

If intel buys McAfee and implements something into their CPUs, that would make McAfee-software the only option to use, then they would basically install a second monopoly for virus-scanners, which the EU want's to make sure doesn't happen.
TheUn4seen 22nd December 2010, 18:07 Quote
Quote:
Originally Posted by SaNdCrAwLeR

how about investigating Apple's Monopolies?

oh wait, it's not a huge giant company, either that or every one of em uses an iPhone T_T

Apple doesn't have any monopoly. There are many cheaper and simply better alternatives to their products, and Apple isn't forcing anyone to use their stuff. If anything, Microsoft is a bigger monopoly, forcing universities to use their products, so the students would have to use them for compatibility reasons and so on. Apple is only using people's stupidity and laziness, which certainly isn't a crime.
Quote:
Originally Posted by jrs77

Europe without the EU would be economically dead within the next 25 years. Instead of less, the european countries need to work even more closely together to survive in the worlds economy.

Finland for example would've allready lost 50% of their bigger companies to russian investors without the EU and the Euro.

I think it's ok that the EU looks into things like this, as this is actually nothing else then what the USA or China are doing to protect their economy. The only difference is, that the EU doesn't make such things behind closed doors but in public.

Well, I see you watch too much TV and don't spend enough time at school. Europe WITH EU will be economically dead within 25 years, especially countries inside the Euro zone, since they don't have means of combating financial problems. Why do you think half of EU countries have problems and the other half are on a fast track to them? Or why Europe no longer has any serious industry left, a process that started, coincidentally, exactly at a time when EU started expanding?
EU only cares about big business, because most politicians have shares in them. They don't give a rat's a** about small business or people, because why should they? They wouldn't earn any money from it.
Right now I can only think of very few EU politicians that actually want to use their power to make Europe better, and one of them you should listen to for a while:
http://www.youtube.com/watch?v=5DlVFKBwbuU&feature=related (skip to 0:30)
GoodBytes 22nd December 2010, 18:23 Quote
EU plays an important role. Granted they need money and mainly feed on Microsoft over nothing (watch this with Windows 8: EU investigates Microsoft Paint), but they this time, they are right to worry.

Imagine, if now, for all coming up Intel CPU's, A/V scans are throttled, and only McAfee has priority speed on the Intel CPU. This is going to be bad news. As I am starting to not trust Intel (monopoly on chipset already set, among other OEM deals going on), we need CPU competition... REAL competition. if Windows 8 supports ARM CPU's.. that means companies like Nvidia, can make killer desktop/laptop CPU's. And that would be great competition.
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