Post a comment
Tweet this
Share on Facebook
Print this article
AP Photo/Yves Logghe
Intel, the world’s largest microprocessor firm, has been fined €1.1 billion by the European Commission for engaging in anti-competitive behavior.
Neelie Kroes, the EC’s Competition Commissioner, went on record to say that Intel has abused its leadership in the microprocessor market to strong-arm its customers into remaining loyal to Intel in the hope of pushing its chief rival, Advanced Micro Devices (AMD), out of the market.
Kroes also cited consumer harm in the Commission’s ruling. “Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years,” she said.
The EU exec says that Intel leveraged its significant financial capabilities to persuade customers into delaying or aborting AMD-powered plans in favor of products with Intel chips. The charges include paying at least one retailer to stock only Intel parts, and offering several secret rebates to make Intel processors the only economical choice.
Intel CEO Paul Otellini took “strong exception” to the deal and noted that Intel planned to file an appeal
“We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterised by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers,” he said.
The European Commission’s ruling is AMD’s third successful lobby in four years, having previously convinced anti-trust regulators of Intel’s anti-competitive practices in both Japan and South Korea in 2005 and 2008, respectively.
RSS Feeds