EU expected to fine Intel for anti-competitiveness
The EU is expected to announce this week that it will fine Intel for anti-competitive business practices that stretch back eight years.
It's expected that the European Commission will reveal its decision to fine Intel on Wednesday and order the company to change its business practices, which the EU believes have been illegal for a period stretching back eight years.
There has been no information on how big the fine might be, but the largest fine levied by the EU was against Microsoft in 2004, where the Commission demanded €497 million (£447 million) for the company's anti-competitive practices.
According to Reuters, the EC is expected to find Intel guilty of anti-competitive practices on two counts. The first violation will say that Intel gave rebates to computer manufacturers to obtain exclusivity or to restrict the use of competing chips from AMD and that it provided other incentives to retailers who chose to sell only Intel-based machines.
The second finding will state that Intel paid PC manufacturers to delay or scrap the launch of AMD-based products and that these payments have restricted competition in the market.
These violations allowed Intel to set the percentages of the market that it wanted to control. For example, NEC was told that 20 percent of its desktop and notebook machines could be AMD-based, while all Lenovo notebooks (and relevant Dell products) had to use Intel chips. 95 percent of HP's business desktop machines had to be Intel-based.
The Commission will order Intel to end those rebates and incentive programmes which it deems illegal by a specific date. Both Intel and the European Commission declined to comment on the rumours, and Intel has repeatedly said that it has done nothing wrong. We'll have to wait until Wednesday to find out if Intel will be fined for anti-competitive business practices.
Do you think it's the right decision and, if so, how much do you think Intel will be fined? Let us know your thoughts in the forums.
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17 Comments
Discuss in the forums Replywell that and AMD will gain some market share problem is though is that AMD are not beating the crap out of intel now as they where 3years ago and the uptake on amd products will not be nearly as high as it could have been back then
maybe 10% more expensive chips is a small price to pay to see competition in the market in the next 3-5 years
In the end... proberly nothing, It's like when you get a parking ticket, i all goes to the state.
AMD will be sure to file a civil suit shortly after the EU Commission passes it's verdict though, and the fine from that suit will go 100% to AMD (and their lawyers). This one is far from over!
If Intel will get fined in EU it might have repercussions in the rest of the world too. Not mentioning that the fine in EU should be less than 10% of the $38 billion revenue... if the rest follow, it won be just a financial crisis year... but a plain s***** year for them.
I'm probably going to pass the I7 and once again support the underdog.
GO AMD! Don't lose to the cheap shot giant!
You don't understand the market, Intel is using mob like strong arm tactics that make products more expensive for all. This isn't winning market share this is a willful criminal act to push competitors out of the market. Acts like this are why we have laws to prevent it and Intel probably made a business decision that the fines would be offset from the profits gained and the financial stifling of it's competitors. Thus leaving it in the technological lead. Those who pressed this policy at Intel should go to jail, it's the only tool to left to encourage ethical business practices since fines are just a hindrance to a particular quarter's bottom line.
That practice isn't allowed for well established businesses... only for smaller ones!
1.06bn euros / $1.45bn / £948m
Record fine, over 2x what microsoft had to pay! Eeek!