Intel Fined Record €1.06 billion For Anti-Competitive Practices

by Charlotte Cardingham
4
Published on 13 May 2009
Related:
Intel Fined Record €1.06 billion For Anti-Competitive Practices

The colossal €1.06 billion fine, set by the European Commission, far outweighs the €497million imposed on Microsoft in 2004 for simlar monopoly charges.

Intel, the world's largest manufacturer of computer microprocessors, have been hit with a record €1.06billion (£948m/ $1.45bn) fine after the European Commission found them guilty of anti-competitive practices.

The California based company are alleged to have given leading computer manufacturers - such as Acer, Dell, HP and NEC – hidden rebates if they agreed only to use microprocessors provided by Intel in their computer products.

Intel were also found to have paid Media Saturn, the parent company of leading European electronics retailer Media Markt, to postpone or cancel products fitted with chips produced by their leading competitor, AMD (Advanced Micro Devices) and, as such, to only sell computers containing Intel microprocessors.

AMD, who currently hold a 12% share of the microprocessor market, have lodged a number of complaints about the brand’s questionable businesses practices over the years. Unsurprisingly, they have today welcomed the news of Intel’s fine.

"The EU decision will shift the power from an abusive monopolist to computer makers, retailers and above all PC consumers," said AMD's European president, Giuliano Meroni.

The Intel brand is currently valued at a staggering £85.4billion, and last year were found to hold a colossal 80.5% share of the computer chip market.

Intel’s chief executive Paul Otellini has confirmed plans to appeal the decision: "Intel takes exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor market,

"There has been absolutely zero harm to consumers. Intel will appeal."

Source

4
+
 

Comments (4)

Meiring
Yea I was just wondering the same thing, great for the fine and everything, but will the fine's income be allocated to AMD for business lost due to intel?
14 May 2009 18:11
 
Dan Covey
The fine is great, but,who gets the fine money??? And, will the computer maker companies who took part in the fraud, also be fined?
14 May 2009 02:05
 
Clarkson
Riiiight Intel, no harm to consumers.... other than forcing them into a corner, where they have only ONE choice in processor. Glad this happened.
13 May 2009 18:24
 
JEEZZZ
maybe there has been harm to consumers, a couple of years ago I wanted an AMD processor in my new dell but i couldnt find it, well if intel was buying dell's decision then it makes sense why i couldnt get a better computer. We all know AMD is better, Dell knows it too, otherwise people would naturally prefer it over AMD and they wouldnt have to pay... but i couldnt choose a better processor because Dell was playing Intel's game, great, I was wondering why I dodnt get an option when dell supposedly lets you customize your PC...
13 May 2009 18:22
 

Add Your Comment. We'd love to hear your thoughts.

Please login, or sign up if you're not yet a member
Comment:

You have 1000 characters left
 
 
 
Compare a
mammoth 11,021
financial products