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
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142 Comments on Intel to be Slapped with Greatest Fine in EU History

#26
btarunr
Editor & Senior Moderator
alexp999I'm not saying Intel are not guilty, nor am I saying the EU arent doing the right thing. It just seems that every month, the EU are fining somebody, as if (like I said) they have nothing better to do.
How do you punish a corporation as large as Intel for doing what it's accused of doing? Punishment is imminent if proven guilty. I find the 1b EUR fine reasonable.

Also, it is the judiciary's job to punish entities if found guilty of something. They really have nothing better to do with a guilty entity, it's their job. EU caught Intel pooch-scr****g with its markets and its companies, investigating, if found guilty, is punishing with the fine.
Posted on Reply
#27
alexp999
Staff
I'm not saying its not just, it just makes me laugh when I see the EU fining everyone all the time.

Makes me think they use it to fund the banks. (Just my own conspiracy theory)
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#28
kaneda
alexp999I'm not saying its not just, it just makes me laugh when I see the EU fining everyone all the time.

Makes me think they use it to fund the banks. (Just my own conspiracy theory)
international banking conspiracy eh?
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#29
tkpenalty
alexp999I'm not saying its not just, it just makes me laugh when I see the EU fining everyone all the time.

Makes me think they use it to fund the banks. (Just my own conspiracy theory)
Its not a conspiracy because it is a valid way to make money. They're just policing the market, thats all. Intel is at court for market malpractises. As I said even though the EU is being a bit greedy, it doesn't render Intel Innocent.
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#30
alexp999
Staff
And like I said my comments arent about the article in particular, and whether or not Intel is guilty, just about the fact that the EU seems to do nothing but fine people.
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#31
mrhuggles
reminds me of the lik-sang thing a little bit, arrg darn EU legal system ruining things for the rest of us lol
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#32
Gam'ster
Meh prob just means we pay more for crap down the road....Also alex have a look at this watch it, its along the lines of what your saying.
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#33
Unregistered
tkpenaltyIts not a conspiracy because it is a valid way to make money. They're just policing the market, thats all. Intel is at court for market malpractises. As I said even though the EU is being a bit greedy, it doesn't render Intel Innocent.
Shit yeah! But at the same time it kinda sucks - and I have no love for Intel.

Hell, most of the towns around here would go bankrupt were it not for the traffic fines they hand out every month. You can always tell when they're at the end of their fiscal month and they haven't made their quotas - you can't spit without hitting a cop car. And they'll fine you for any funky shit they can find or make up - farting without signaling, intoxicated parking, etc.

If the EU was making shit up just so they could sue companies, that would be unfair. But if they're really breaking the law and they happen to get a nice chunk of change - where's the harm?

Intentional acts like collusion usually require both compensatory damages and punitive damages. Comps are for actual damage caused by the defendant. But punitive is based on their ability to pay. The idea is you want to charge them enough so that it hurts. I'd bet that's why the number is so high. It has to be for Intel to even notice it.
#34
FordGT90Concept
"I go fast!1!11!1!"
Anti-trust used to be when company A buys up competitor B so competitor B is no longer a competitor (e.g. Carnegie Steel). Now, they bend it to their will which is why they rarely end up in favor of the defendant.

Again, Intel just better be saving up that $1 billion Euros. They are more likely to win the lottery than win an anti-trust lawsuit.
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#35
WhiteLotus
I wonder who in the EU takes control of the money - and why I haven't seen any evidence of all the money being used to build things. Someone is getting very rich quick i believe.
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#36
TreadR
LOLz at all the people bashing EU... it's not only an EU issue... Intel has anti-trust law suites also in ASIA and as this article states USA's FTC is also involved.

So cut the crap with the EU blaming and move along!
We all know that if you won't play Intel's way, you'll pay. I know... it rhymes!

What's that? Can't buy Atoms without chipsets? :shadedshu
There!... one example of anti-competitive practices against NV's ION platform which doesn't involve AMD.
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#37
Binge
Overclocking Surrealism
If the post above has any validity than IE packaged with Windows is totally reason to sue... How stupid. I'd like a better understanding of how Intel is monopolizing.
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#38
Beertintedgoggles
I don't understand why the validity of this is so hard for people here to understand???
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#39
Mussels
Freshwater Moderator
BeertintedgogglesI don't understand why the validity of this is so hard for people here to understand???
oh people beleive intel are guilty. they just dont like the fact that the EU is getting this money all to themselves.
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#40
WarEagleAU
Bird of Prey
The dell not selling AMD really doesnt fall to customers not demanding it. At one point, they were on HSN and such offering AMD cpus, but they said they werent available from the website, they were prebuilt. This was before they announced they were going to be offering AMD Cpus. Also, if I remember correctly, when AMD said hey, we will offer AMD cpus, wasnt this about the time C2D came out? Shady indeed.

Also, Dell does most of their sales with businesses and government, which also may have played a part.
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#41
TheGuruStud
BeertintedgogglesI don't understand why the validity of this is so hard for people here to understand???
I think we have lots of youngins that haven't been around/aware to witness the BS intel has done over the years.

This is only about the money end. Intel has done incredibly evil marketing forever. Toms, Anand, quite a few mags, etc have historically had ridiculously positive reviews for intel. Even with the pentium 4! They even owned a synthetic benchmark (sysmark I think). Back in the athlon XP and 64 days it showed AMD chips to be like 20% slower in everything. No one knew this, but the address they gave for the company was.... intel's.

There's so much shit they've done it's asinine. It would take pages to list them all and they can be proven (literal tons of forum posts over this).
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#42
w00t
Excellent. Intel are shady, and had this coming.
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#43
newtekie1
Semi-Retired Folder
alexp999I'm not saying its not just, it just makes me laugh when I see the EU fining everyone all the time.

Makes me think they use it to fund the banks. (Just my own conspiracy theory)
Over the past few years the EU has become a joke in most other countries. US Companies laugh at the EU's stupid antics. The EU has become full of itself, they won't see any money from Microsoft and they won't see any money from Intel either. Their antics have degraded themselves so low that most international companies don't even recognize them as a governing body.

They fine the biggest companies for things that only the EU claim are illegal, while leaving the "small" companies unpunished for doing the exact same things. They impose insane fines and requirements on the biggest companies, and never enforce the same requirements on the "small" companies. Once they got to the point where they started telling Microsoft what it could and couln't name it's products, Microsoft basically laughed at them and told them to fuck off. Intel will most likely do the same with this judgement as well.

I'm starting to think the EU is simply fining the biggest companies it can to try and generate money for their failing economy...
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#44
b1lk1
Intel was only offering discounts if people did not use AMD products. If they had just offered the discounts no matter what their vendors used then they would not have got into trouble. Intel deserves this and the resulting fines. This will not put them out of business, it will just force them to rely on their products selling themselves instead of forcing people to buy them.
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#45
alexp999
Staff
newtekie1Over the past few years the EU has become a joke in most other countries. US Companies laugh at the EU's stupid antics. The EU has become full of itself, they won't see any money from Microsoft and they won't see any money from Intel either. Their antics have degraded themselves so low that most international companies don't even recognize them as a coverning body.

They fine the biggest companies for things that only the EU claim are illegal, while leaving the "small" companies unpunished for doing the exact same things. The impose insane fines and requirements on the biggest companies, and never enforce the same requirements on the "small" companies. Once they got to the point where they started telling Microsoft what it could and couln't name it's products, Microsoft basically laughed at them and told them to fuck off. Intel will most likely do the same with this judgement as well.

I'm starting to think the EU is simply fining the biggest companies it can to try and generate money for their failing economy...
Finally someone understands what I was trying to say. :respect:

Though I agree Intel needs to get punished in this instance, I'm just sick of hearing the EU has fined some big corp AGAIN!
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#46
WhiteLotus
newtekie1I'm starting to think the EU is simply fining the biggest companies it can to try and generate money for their failing economy...
They would have to make the fines a lot bigger than that then wont they.


Besides i want to know just who in Brussels decided that they are going to sue Intel. Wonder if it's an AMD fanboi who also just happens to hate microsoft...
Posted on Reply
#47
btarunr
Editor & Senior Moderator
newtekie1They fine the biggest companies for things that only the EU claim are illegal, while leaving the "small" companies unpunished for doing the exact same things.
In this particular case, they're not the only ones to claim Intel to be into illegal activities. Also we don't have anything to suggest smaller companies are getting away unpunished, or otherwise. It's just that Microsoft and Intel are two high-profile entities, and when they land in soup, they get all the media-coverage.

When a Hollywood celebrity gets busted for drunk-driving, it's all over the news and the internet. But when you and I get busted for the same, we probably won't make it to the news, unless we did something nasty. :)
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#48
Easy Rhino
Linux Advocate
btarunrIntel is currently being investigated for irregularities including encouraging hardware vendors not to use AMD products, and offering discounts.
I am so glad I do not live in the EU. Not that the US is much better these days. I mean what is Intel supposed to do? Go to a vender and say how awesome AMD products are and tell them they should buy AMD instead? And then sell their Intel products for a much higher price? Why even bother doing business then? And the EU fines these companies way to much. If you are a successful company you might as well just give all your profits away to the EU in advance and close up shop. I am sure that will be great for the economy... And it is Orwellian that it is being called "anti-competitive" when what Intel is doing is EXACTLY competitive.
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#49
TheGuruStud
Easy RhinoI am so glad I do not live in the EU. Not that the US is much better these days. I mean what is Intel supposed to do? Go to a vender and say how awesome AMD products are and tell them they should buy AMD instead? And then sell their Intel products for a much higher price? Why even bother doing business then? And the EU fines these companies way to much. If you are a successful company you might as well just give all your profits away to the EU in advance and close up shop. I am sure that will be great for the economy... And it is Orwellian that it is being called "anti-competitive" when what Intel is doing is EXACTLY competitive.
*sighs* I don't think anyone knows how to read. Go read japan's anti-trust suit and AMD's case against them.

Let me put it like this: You're a car dealer. You want to have nissans and GM cars on your lot. You try to buy nissans, then GM call you up. They tell you if you buy more than 10% nissan, not only will they charge high prices for their cars, they may just cut your supply completely, ruining your business.

Intel has done this to every major OEM. Some of them couldn't even sell AMD in fear of losing all profit.

Intel should be fined billions, but the money should go to AMD.
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#50
a111087
i think Intel could pay that much and will be completely fine
Posted on Reply
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