European Commission Smacks Intel for One Billion Dollars

[The_root_of_all_evil]

European Commission Smacks Intel for One Billion Dollars

After engaging in "abuse of the market", Intel is being hit by the European Commission for nearly $1.5 billion.

According to the European Commission, Intel paid off manufacturers to recommend its chips over those of AMD.

AMD complained in 2000, 2003 and 2006; Intel was found to have broken the antitrust ruling between 2002 and 2007.

"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said Neelie Kroes (pictured), the Competition Commissioner. "Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated." Intel has been told to immediately cease this business practice and pay $1.45 billion.

Intel denies the accusation, saying, "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."

Kroes joked about this later in the press conference, saying that Intel should change its slogan from "sponsors of tomorrow" to "the sponsor of the European taxpayer."

This new levy dwarfs the meager Microsoft payout of $794 million over a similar antitrust breech, and may not be the end of such woes for Intel. Japan, Korea and even the US are all preparing charges according to David Anderson, a lawyer at Berwin Leighton Paisner [http://www.blplaw.com/].

Source: The BBC [http://news.bbc.co.uk/1/hi/business/8047546.stm]

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[Tech Team FTW!]

Hate to say this, but search button.
Anyway

Intel denies the accusation, saying, "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."

Have they just used this as a means for advertising?

 

[Susan Arendt]

Hate to say this, but search button.

Not everyone who visits this site is an active member of the forum or gets their information there. They get information from our news feed, from RSS feeds, or simply by visiting the front page. If you actually want to be constructive about having information before our news team reports it, how about sending it to them as a tip? Otherwise, please keep the smugness to yourself.

 

[Teh_Doomage]

Regardless, every computer guru knows, AMD chips tend to be a bit better than Intel chips....silly companies.

 

[Abedeus]

Regardless, every computer guru knows, AMD chips tend to be a bit better than Intel chips....silly companies.

Really? I keep hearing quite the opposite things.

Also, why they are attacking Intel AND NOT VALVE? Those assholes have been pricing us too high for almost half a year in June. Thank God some developers see this and give us lower prices ($20 for Plants vs Zombies in US, we get it for 10?).

 

[sms_117b]

Sorry intel, but your business tactics are too smart for this world, so we'll fine you.

Seriously, I think AMD are just jealous of intels success and how well the company is known. If they did pa manufacturers off, so what, I would do it. Business tactics, do whatever it takes to get a head.

 

[Doug]

Regardless, every computer guru knows, AMD chips tend to be a bit better than Intel chips....silly companies.

From what I understand, it varies - AMD tend to be slightly better at game processing, Intel at pretty much everything else. That said, from what I understood, Intel had managed to pull ahead in the Multi-core processor war.

 

[Trivun]

Hate to say this, but search button.

I agree with Susan. It looks as if you just seem smug that the News Team were beaten to the punch for once, but it doesn't mean they have no reason, as Susan stated, to post the news anyway. Plenty of people watch BBC News 24 and still read the Daily Mail. As it were. Ahem.

Anyway, on topic, I'm glad to see Europe has finally done something right for once. However, I suppose that much money is a bit excessive as a fine, don't you think?

 

[Alleged_Alec]

If they did pa manufacturers off, so what, I would do it. Business tactics, do whatever it takes to get a head.

And it would still be just as illegal. Not only this, but you're also slowing down progress. I think that 1,5 billion is still a reasonably low fee.

 

[Eagle Est1986]

What I want to know is where the hell all that money will be going? Some rebate for Europeans would be nice, just like that Futurama episode

 

[sms_117b]

If they did pa manufacturers off, so what, I would do it. Business tactics, do whatever it takes to get a head.

And it would still be just as illegal. Not only this, but you're also slowing down progress. I think that 1,5 billion is still a reasonably low fee.

I don't think $1.5 billion is anything to them really, they've cornered the second most demanded section in computer tech. (Microsoft cornering the most demanded). i don't see why it's illegal, just seems like good business tactics to me.

 

[Simalacrum]

my response is meh. I hardly know anything about PC's anyways, all I know is this aint gona put a dent in Intels collective arse - they can afford it, so why not pay up?

 

[nova18]

Hate to say this, but search button.

Not everyone who visits this site is an active member of the forum or gets their information there. They get information from our news feed, from RSS feeds, or simply by visiting the front page. If you actually want to be constructive about having information before our news team reports it, how about sending it to them as a tip? Otherwise, please keep the smugness to yourself.

Seconded, the Search button relies on the fact that you know what you are searching for.
The News Room is here to tell us the latest without us having to find it ourselves.

 

[Izerous]

...they can afford it, so why not pay up?

If they pay up without fighting it is as good as them pleading guilty. Which in turn could lower consumer trust with the company. With lower trust in a company consumers may move to AMD which would be a larger hit for Intel than a strait out ~1.5 billion fine.

A lot of intel practices recently have been questionable and as the article mentioned Europe is only the first of the to take action and the others are following.

In the end assuming this is all true this does actually hurt the consumer. By forcefully rasing their market share with such methods they had lowered their competitors market share. However with CPU's no competition means no push for further improvements of the technologies. I mean look at how stale the video card market was for the last while when AMD/ATI were recovering from the massively expensive merger. All the new cards from Nividia were rehashes of old cards, even performing worse then some of the older cards.

 

[Alex_P]

Regardless, every computer guru knows, AMD chips tend to be a bit better than Intel chips....silly companies.

It fluctuates. Whoever creates the next-generation chip and works out the kinks first is "better" that particular year.

-- Alex

 

[oliveira8]

Regardless, every computer guru knows, AMD chips tend to be a bit better than Intel chips....silly companies.

Really? I keep hearing quite the opposite things.

Also, why they are attacking Intel AND NOT VALVE? Those assholes have been pricing us too high for almost half a year in June. Thank God some developers see this and give us lower prices ($20 for Plants vs Zombies in US, we get it for 10?).

Actually Plants vs Zombies on Steam is actually cheaper than at Popcap website.
http://www.popcap.com/games/pvz :20?

http://store.steampowered.com/app/3590/ :10?

Oh shit! Valve aint the Devil!!! Oh no!

P.S:You not forced to buy games on Valve, so stop crying about that every time. On the other hand you almost forced to get an Intel chip, since those AMD chips spend most of their time, thinking if they should work or not...

 

[Abedeus]

Regardless, every computer guru knows, AMD chips tend to be a bit better than Intel chips....silly companies.

Really? I keep hearing quite the opposite things.

Also, why they are attacking Intel AND NOT VALVE? Those assholes have been pricing us too high for almost half a year in June. Thank God some developers see this and give us lower prices ($20 for Plants vs Zombies in US, we get it for 10?).

Actually Plants vs Zombies on Steam is actually cheaper than at Popcap website.
http://www.popcap.com/games/pvz :20?

http://store.steampowered.com/app/3590/ :10?

Oh shit! Valve aint the Devil!!! Oh no!

P.S:You not forced to buy games on Valve, so stop crying about that every time. On the other hand you almost forced to get an Intel chip, since those AMD chips spend most of their time, thinking if they should work or not...

That's why I said some developers notice that the game is unfair. Did you even read my post? I said that we get to pay only 10 Euro on Steam. Now look at Mass Effect, Far Cry 2 or Fallout 3. Three times more than retails.

Oh, and I'm not forced. But recently, shops have been setting prices to match the Steam ones. TF2 used to be 60 PLN when it was $ on Steam, now it's 80 PLN. 25% more is visible, no?

Oh, and people don't force you to buy Intel, either. You have the right to choose your own chipset.

 

[Zacharine]

Also, why they are attacking Intel AND NOT VALVE?

In case you didn't actually read the entire article, there was no 'attack' against intel. The investigation and judging was based, at least in part, to the complaints made by AMD.

A company complained about possibly dubious business practices of one of their competitors. Investigations were launched and apparently something was found. How is this an attack against Intel?

 

[The_root_of_all_evil]

You have the right to choose your own chipset.

That's what the story was all about. Shops were, allegedly, being bribed to ONLY sell you Intel. That's why they got slapped.