Thursday, May 14th 2009
AMD Comments on EC Ruling that Intel Violated EU Law, Harmed Consumers
The European Commission today found Intel guilty of abusing its dominant position in the global x86 microprocessor market, saying that "Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years. Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated." The Commission also stated that "there is evidence that Intel had sought to conceal the conditions associated with its payments." The EC decision requires Intel to change its business practices immediately and fines Intel a record EUR 1.06 billion (US $1.45 billion).
"Today's ruling is an important step toward establishing a truly competitive market," said Dirk Meyer, AMD president and CEO. "AMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers."
"After an exhaustive investigation, the EU came to one conclusion - Intel broke the law and consumers were hurt," said Tom McCoy, AMD executive vice president for legal affairs. "With this ruling, the industry will benefit from an end to Intel's monopoly-inflated pricing and European consumers will enjoy greater choice, value and innovation."
The EC decision stated specifically that:
In 2008, the Korea Fair Trade Commission (KFTC) issued a 26 billion won fine (approximately $25.4 million USD) saying that Intel's abuse of its dominant position included coercing and paying customers millions of dollars on the condition that they use only Intel chips, delay launches of AMD products, and/or not develop any new products with AMD chips. The KFTC also found that, "South Korean consumers had to buy PCs at higher prices as domestic PC makers were forced to buy Intel's pricier CPU." In addition to a fine, the KFTC ordered Intel to stop the practice of offering payments to PC makers conditioned upon them not doing business with AMD. Intel is in the process of appealing the ruling.
In 2005, the Japan Fair Trade Commission (JFTC) ruled that Intel had violated the country's anti-monopoly laws by illegally forcing full or partial exclusivity with five Japanese PC makers. Intel did not appeal the ruling.
In the United States, the U.S. Federal Trade Commission (FTC) and New York Attorney General's office are investigating Intel for abuse of its monopoly position. In 2005, AMD filed private litigation in the US District Court of Delaware, which is scheduled for trial in spring 2010.
Source:
AMD
"Today's ruling is an important step toward establishing a truly competitive market," said Dirk Meyer, AMD president and CEO. "AMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers."
"After an exhaustive investigation, the EU came to one conclusion - Intel broke the law and consumers were hurt," said Tom McCoy, AMD executive vice president for legal affairs. "With this ruling, the industry will benefit from an end to Intel's monopoly-inflated pricing and European consumers will enjoy greater choice, value and innovation."
The EC decision stated specifically that:
- "Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel".
- "Intel made payments to major retailer Media Saturn Holding from October 2002 to December 2007 on condition that it exclusively sold Intel-based PCs in all countries in which Media Saturn Holding is active."
- Intel "interfered directly in the relations between computer manufacturers and AMD. Intel awarded computer manufacturers payments - unrelated to any particular purchases from Intel - on condition that these computer manufacturers postponed or cancelled the launch of specific AMD-based products."
In 2008, the Korea Fair Trade Commission (KFTC) issued a 26 billion won fine (approximately $25.4 million USD) saying that Intel's abuse of its dominant position included coercing and paying customers millions of dollars on the condition that they use only Intel chips, delay launches of AMD products, and/or not develop any new products with AMD chips. The KFTC also found that, "South Korean consumers had to buy PCs at higher prices as domestic PC makers were forced to buy Intel's pricier CPU." In addition to a fine, the KFTC ordered Intel to stop the practice of offering payments to PC makers conditioned upon them not doing business with AMD. Intel is in the process of appealing the ruling.
In 2005, the Japan Fair Trade Commission (JFTC) ruled that Intel had violated the country's anti-monopoly laws by illegally forcing full or partial exclusivity with five Japanese PC makers. Intel did not appeal the ruling.
In the United States, the U.S. Federal Trade Commission (FTC) and New York Attorney General's office are investigating Intel for abuse of its monopoly position. In 2005, AMD filed private litigation in the US District Court of Delaware, which is scheduled for trial in spring 2010.
104 Comments on AMD Comments on EC Ruling that Intel Violated EU Law, Harmed Consumers
"real men use real cores" aint working for them at all...
edit. not just yet. AMD stock dipped against Intel's growth.
Look at this from today 2:52pm Eastern.....
I don't get why all intel fanboys are just pissed with this EU fine....
I own intel myself two Q6600 rig and also one 9950 BE rig.... so I take no sides on love about brand (although I'd like to see AMD going up even more, so we can have real competition).
Just imagine... you have 80% of the market...... suppose 50% from this 80% goes for research..... so... 40% of every cpu sold goes into intel for research of new tec., while keeping the same ratio, only 10% goes for amd research tec..........
See guys... get my point: Intel can, by doing this, maintain 4 (four... I said four), AMD researches at a time, Intel should do in 1 year what AMD would do on 4 (supposing everything is linear, of course)........ but even so i7 isn't close to be 4x better than Phenom II (supposing both started being developed at the same time).................
But it just doesn't stop right there..... things are even worse..... because, even if the "4x times more money" intel has to research fail..... Intel, even so, would still hold 80% of the market (P4 / HT remember ?)..........
Where is the competition ? It's like you're racing, but on this race no matter what you do, you will still be 80% behind the BigGuy, always. Because the BigGuy paid for a bunch of other BigButSmallersGuys to hold you back. So Is it your fault for not having money to pay BigButSmallersGuys to hold the Big Guy also ? I guess not.
I'll take AMD side on this, for sure. Taking Intel side is just illogical.
HOWEVER I aint selling it until I make my money back.
AMD did it to HP with the G60 series.
GM does it with its dealers.
No consumer will pay this fine.
In a free market it's the competition that sets price, not a company.
Ok, intel got fined, so what ? Will it raise prices from i7 ? Hell no! If it does that, they're doomed, because P2 prices won't go higher.... will it be less competitive ? It just won't be able anymore to lunch a $1000.00 cpu soon.
My 2 cents:
If intel is really pissed about that, they will invest even more on research so they can smash AMD with their new tec, and not by paying for oems to do that......
Don't worry i7 and p2 prices will go down as usual, your life won't change, but regular consumers (95% of consumer cpu market maybe?), will have more AMD than before on their houses, and for us, enthusiasts, nothing will change for now, but in the future it will, we will have better tec at better prices.......
Think about it, no company can revenge fines on consumers as long as competition exists.
this is exactly what wasnt happening, intel was choking the market with secret rebates and incentives to not stock competitors products
you cant go around doing this
intel OWNS the oem sector its like do you see an amd machine in my college nope, did i see an amd dell in the high school i went to nope
they broke EU laws so they need to pay the price, they make like enuf in one year to cover that fine
That's not even the issue here.
The problem is that Intel was threatening companies with a virtual "busting of the kneecaps" were anybody to buy from AMD.
Though, if you're like a few "Gordon Gecko"-esque posters here on this board, you probably see nothing wrong with that, since "might makes right." :shadedshu
I am the supplier of your hardware for review, and I give you the hardware for a nominal price and you are free to sell it after, but only as long as you give me a positive review, and only review products I OK.
Now leats say that another company wants to have you review their hardware, I learn of it and tell you that I will give you the hardware for free, and provide a vacation for your family and trips to my events for free. Hell, I will buy you a condo and a new car.
If the other company matches it to a reasonable point, I tell you that if you review their hardware in a favorable light compared to my hardware I will take everything away and put you in a bad light, make you pay full price for your review hardware and trash your name.
Would this be OK with you, after all, I am only trying to keep money in my business.
The people who made this practice famous were corrupt politicians and the Mob.
but the problem is by INTEL practice AMD could not gain any market even went they have a good product
AMD loses billion worth damage by this
AMD will have money to develop thing faster
we could have being using fusion by now if not for intel :banghead:
AMD was at 40 bucks per share, was down at sub 2 dollar (1.53 i think) and now back at 4.24 checked 22:50 CET (1+GMT)
They've had a high of 4.3-4. they just gotta keep in the game like they do now, and do the bulldozer right!
I think Intel is an awesome company. I also think AMD is amazing. There is enough in the OEM PC market to support both, so I wish they all could play nice. I teach my 4 year old to share for the good of the group, but I guess the corporate world never learned that.
FREE MARKET IS WHAT MAKES INNOVATION POSSIBLE!!!