Saturday, May 2nd 2009
Intel to be Slapped with Greatest Fine in EU History
It is predicted that silicon giant Intel may face the greatest fine for its alleged anti-competitive practices, in a case heard in the European Union. Intel is currently being investigated for irregularities including encouraging hardware vendors not to use AMD products, and offering discounts. Legal analysts estimate the fine to be well over 1,000,000,000 EUR, over double that of what is heading Microsoft's way. In a statement to the New York Times, says Howard Cartlidge, head of the EU competition group at law firm Olswang in London, "I would be surprised if the fine isn't as high or higher than in the Microsoft case. Technology markets are where the European Commission has perceived particular problems due to dominant companies."
The ongoing trial in EU runs parallel to similar anti-competition trials in Japan and Korea, where Intel is found guilty. It is a joint effort between EU and United States Federal Trade Commission investogators. Despite previous convictions, Intel maintains that it has done nothing wrong and is confident of being found innocent. Says Intel spokesperson Robert Manetta, "Overall, Intel's conduct is lawful, pro-competitive and beneficial to consumers." Naturally, AMD begs to differ. Sources in AMD reveal that Intel conducted anti-competitive practices throughout, to maintain an 80-20 competition. The number took very little change even when AMD was at the peak of technology advancement over Intel.
Source:
TechConnect Magazine
The ongoing trial in EU runs parallel to similar anti-competition trials in Japan and Korea, where Intel is found guilty. It is a joint effort between EU and United States Federal Trade Commission investogators. Despite previous convictions, Intel maintains that it has done nothing wrong and is confident of being found innocent. Says Intel spokesperson Robert Manetta, "Overall, Intel's conduct is lawful, pro-competitive and beneficial to consumers." Naturally, AMD begs to differ. Sources in AMD reveal that Intel conducted anti-competitive practices throughout, to maintain an 80-20 competition. The number took very little change even when AMD was at the peak of technology advancement over Intel.
142 Comments on Intel to be Slapped with Greatest Fine in EU History
And . . . I couldn't resist
"One . . . . Billlliiioonnn Euros"
I wonder though, is providing discounts and encouraging vendors to use their product really illegal? Isn't that the name of the game? :confused:
Sounds like Intel didn't bribe the right people like EU companies do. Its a shame but US companies cannot openly bribe, despite it being openly accepted in the many European countries as a common practice to bribe in business. I have seen it first hand in the defense industry. Its pretty bad when US companies end up taking the high road when compared to their various counterparts overseas and missing out on some business. Intel didn't bribe, they offered discounts. Its weird to see the US companies doing the right thing and having money taken from them by a currently strapped for cash EU.
Its fine to say don't use the competitor's offering, and saying our offerings are better etc. Why would a company say,"Please use our competitor's stuff instead". Its rediculous.
They've been said to penalize companies for using non-Intel products. They'll give you a super awesome deal if you are Intel-only. Try to sell some AMD stuff and they kill off your deals. So, you end up screwed big time compared to your Intel-only competition. So you can see that with their seriously dominant position, they can pretty much control the market with such moves. Remember how long Dell was Intel-only? When they started selling AMD hardware it was a very big deal.
I don't know all of what Intel's accused of. I also doubt that AMD is all-perfect either. Big business isn't exactly 100% about the good of the market or the consumer and these companies really will do whatever they can get away with to make a buck.
All the intel fanboys can say that poor intel is getting the shaft, but when every regulatory body in the world is either investigating your business practices or has officially determined that you are a bully and a thief, then maybe there's something to it. Although the big conspiracy theory is much more probable of course. :nutkick: :banghead:
"Yeah I'll give you a discount... oh wait, you sell AMD systems as well? Erm.. No discounts (unless you stop selling AMD chips hint hint wink wink), sorry."
How is that any different from "I'll pay you not to sell the competitions product"? Its just a round-about way of giving money to people to carry only one good.
"If you buy from intel, we give you this CPU for $100"
"if you can prove you dont sell AMD either... we sell it to you for $75"
(prices are a made up example)
Enthusiasts and reviewers everywhere generally said that. However over in the OEM sector; what caters a majority of the users, oddly enough AMD offerings in OEM solutions such as Dell HP, etcera were almsot non-existent.
Now why would OEMs give themselves a MAJOR pain in the backside in terms of customer service by using the slower, more expensive, and less reliable, power guzzling solution?
Northwood to Prescott, we see CPUs that run bloody hot, yet give poor performance in contrast to AMD which had faster, cheaper and cooler solutions. Yet the illogical happened.
A shady Pair gain deal would have made much sense, Intel gives discounts if they dont use AMD hardware, this would prove to Firms to be desirable as it would maximise profits while minimising manufacturing costs. Since Intel would have been to most OEMs with this deal, AMD's dominance would have been cancelled. Not saying that Intel did this but its plausible.
The EU should pay AMD however, and not just pocket the money themselves. I agree that the EU is using rather unscrupulous means to get themselves out of the financial crisis, but the fact is that Intel is still guilty.
The reason Dell didn't offer AMDs is because people didn't demand it and it also means issuing twice the number of SKUs for their product lines. Buying one product enmasse is cheaper than buying duplicate products from multiple vendors. The only reason why Dell changed their position is because people started demanding AMD products because they heard they were better.
It doesn't matter whether or not Intel is/was guilty of any anti-trust law. Intel will have to pay if they want to continue to sell products in the EU. The EU feels they have nothing to lose when they win (notice the wording there--EU can't lose).
Really does the EU have nothing better to do than fine everybody :shadedshu
To me its like, "change the record", oh look, EU fines again! :yawn: (Not at your news post :p )