Thursday, July 23rd 2009
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Intel Appeals Against EU Antitrust Verdict
Earlier this year in May, the European Commission for anti-competitive practices found Intel guilty of various antitrust practices. The company was then slapped with a massive 1.06 billion Euro (US $1.45 billion) fine, the single largest antitrust fine it has ever meted out to a company. On Wednesday, Intel explored its legal option of appealing against the fine with Court of First Instance in Luxembourg, Europe's second highest judicial body. The company argues that the EC regulator failed to consider the evidence that supported Intel's contention during the trial.
In a telephone interview with ComputerWorld, Robert Manetta, an Intel spokesperson said "We believe the Commission misinterpreted some evidence and ignored other pieces of evidence." Meanwhile, apart from the fine Intel is expected to pay within three months of the verdict, the ruling also puts a stop to Intel's rebates to PC manufacturers and retailers on condition of near or total exclusivity, among several other deemed malpractices. Authorities in South Korea and Japan found similar irregularities in Intel's marketing methods, while the U.S. Federal Trade Commission and New York Attorney General's office are investigating the company for abuse of its monopoly position.
Source:
ComputerWorld
In a telephone interview with ComputerWorld, Robert Manetta, an Intel spokesperson said "We believe the Commission misinterpreted some evidence and ignored other pieces of evidence." Meanwhile, apart from the fine Intel is expected to pay within three months of the verdict, the ruling also puts a stop to Intel's rebates to PC manufacturers and retailers on condition of near or total exclusivity, among several other deemed malpractices. Authorities in South Korea and Japan found similar irregularities in Intel's marketing methods, while the U.S. Federal Trade Commission and New York Attorney General's office are investigating the company for abuse of its monopoly position.
307 Comments on Intel Appeals Against EU Antitrust Verdict
the fine? :roll: what a joke, and wasn't like 60% of the fine supposed to go to AMD? that's what i thought i'd heard in the previous thread about this trial. I also think the fine should have been not just 1billion but more like 1billion every year for 3-5 years, just as many years as intel broke the EU's law.
ps, i hate the carebears.....
sounds like fun, give me that job, walk around clubing people like they are baby seals....sounds acceptable since it would be for the all mighty goal of true and total capitalism!!!
P.S. I am quite well versed in how companies make money, the fact is not all of them threaten and bully their way to the top, some just provide the better product at the better price and let the market decide, others like apple with the ipod do an AMAZING job marketing their goods(the ipods mediocre at best quality wise, but its got killer marketing and name recognition behind it)
Look, why aren't people getting huffy with the computer retailers? Intel didn't force them to choose to exclusively carry Intel. They gave them rebates. Price incentives. If you only put our processors in your computer, the entire shipment will cost less. Maybe its shady, but then again the businesses themselves seemed to go with it.
So why aren't the store owners involved getting fined? They stifled the competition just as much by accepting to pay less. They stood to gain just as much. If it costs them less and they don't pass on the savings, they're pocketing your money that you still agreed to pay for the item. But Intel is the only one getting fined?
Why don't they fine Coca Cola and Pepsi? Everywhere in Canada (maybe not the States, dunno) has basically one of the two brands per restaurant. The restaurant agreed to only sell Coke or Pepsi products, but not both. The competition is being stifled, why isn't this an issue?
If Apple got to where they are via only marketing why couldn't Intel? At the time Intel was accused of doing anti-competitive practices "Pentium" was a house hold name. Even today few people have any idea who AMD is and what they offer. I think you managed to prove my point while you made your argument. ;)
Why would Dell or HP push an "unproven" product when Intel already did all the marketing? Not only could AMD not meet the demand at the time but Intels foot hold on the industry was in the mind of the people. Intel may not have had the product but by far they had the brains.
Anyway all this is besides the point. If this was about justice the money would go to AMD. But its not. Its going to buy more yachts in the EU.
Arguing that the retailers are equally responsible, because they'd accepted this practice, is like saying it's your fault if somebody pushes you off the road and you don't try to crash your car into them (and total it) to stay on it.
And please everybody refrain from arguments like: "It's OK to to do this kind of stuff, this is free market etc. and yay capitalism is great" - grow up!
Forcing retailers to buy your product only is not "free", the free market is not wild west free, but is supposed to have fair rules, otherwise it is not efficient but becomes abusive and the consumers suffer.
they have been convicted of this in japan and other non-EU counties, its not just the EU picking on people in this case(yes they do-do that but i agree with at least part of their complaints and this is one)
when you threaten in order to get your way, you are being a bully and also IMHO quite un-ethical.
if they simply said they would give a bigger discount if you refrained from using the competitors product that wouldn't be a big deal to me, but thats NOT WHAT INTEL DID, and intel KNEW this could happen, they made enough that if they do pay the fine, its a drop in the bucket compared to what they made by doing this shit for many many years.
intel knew this could/probably would happen, but also knew it wouldn't even touch the money they made by doing it so they win either way.
Either way, I still think the fine is bureaucratic BS. It's nothing more than a way for govts to make money on a successful business. Same with the Japan and S. Korea cases. I still hope Intel wins the appeal.
And "uh..AMD should have done something similar" in general is a lame argument. You don't fight a crime with another crime. It becomes mafia, not business.
Step one towards marketing in AMD's case is to get rid of that illegal market share cap Intel forced. If it can't do it being a company 1/10 the size of its competitor, it will seek the help of an entity 1000x the size of Intel to do the work, since that larger entity ends up getting a healthier market at the end.
And yes, the bribery cases do have a role to play against AMD, otherwise they wouldn't be part of the investigations in the first place. European companies were bribed to avoid/postpone AMD product launches.
Sorry, but I still don't buy into it. The fine should be overturned.
Sorry, but I don't buy into it. Every country with decent trade laws, a half-decent conscience, and the ability to enforce its laws, should similarly fine Intel.
Your analogy is false and kind of non sensical. If you want a better one that applies, its like someone telling you to shoot someone in the head. You agree. Then when brought up on murder charges you don't think they should charge you because you say 'they told me to'. Sorry, you're still guilty. So again, why the focus on Intel? Because they've got the pockets and government wants in on them.
So we're not allowed to argue for capitalism because you view it as childish? Let me try.
"Everyone! No more responses unless you agree with me! I mean grow up!"
Dunno, don't think that'll fly.
www.youtube.com/watch?v=RA_TJb_VbYE
So because Intel is dominant player, they are in fact forcing the retailers to accept these rebates, otherwise they will suffer huge losses and maybe go out of business. Well...that's a good argument. Your analogy doesn't account for the fact, that Intel essentially did force the retailers to accept the rebates, so applied to your analogy that would be pointing a gun at someone's head and telling him to shoot the other guy. It is indeed childish to explain Intel's malpractices by the capitalistic system. It is not a matter of capitalism vs. socialism. It is a case of illegal vs. legal. You know capitalist societies have laws too.
So now we have the USFTC and its suspicion of Intel. I say suspicion because I haven't heard of any formal charges yet from the USFTC. After Enron and all the other crap that has been going on in the U.S. market this screams knee jerk reaction. Witch hunts have become a favorite pastime of our government lately. Of course the USFTC is going to investigate Intel after the EU "fined" them. I'm surprised we haven't read of any charges yet. Like I said, there's blood in the water. Oh no its not profit. Its "justice". :laugh: I guess by forcing you mean they had guns to thier children's heads? I ask because thats much more likely to happen than for HP and Dell not to own phones. One phone call to the USFTC would have brought this to a halt. But you know why they didn't call? Because their legal departments at the time saw nothing wrong with what Intel was doing and everyone made a killing. Please there are no victims in this case but Intel.