Intel was issued a letter levying a fine of a record $1.45 billion by the European Commission today. Wow, but why you’d ask. Well, the fine has been levied to Intel for having abused its dominant market share (80 per cent) by by paying computer manufacturers Acer, Dell, HP, Lenovo, and NEC as well as retailers to postpone, cancel or downright avoid using AMD’s products! Wow, Intel sure looks serious about comepetition.
Condering the past fine for something similar by Microsoft was half of that amount, this sure must have come as a big hit to Intel. The European Commision began closely monitoring Intel way back in 2001, when AMD issued its first complain. The Commission has said that it will continue to closely monitor Intel’s acceptance of this fine and their acting upon it, to make sure this situation is adhered to asap.
Paul Otellini, Intel’s President and CEO issued the following statement in response to it:
“Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal.”
“We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don’t perform the market acts accordingly.”
“Intel never sells products below cost. We have however, consistently invested in innovation, in manufacturing and in developing leadership technology. The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world’s leading volume manufacturer of microprocessors.”
“Despite our strongly held views, as we go through the appeals process we plan to work with the Commission to ensure we’re in compliance with their decision. Finally, there should be no doubt whatsoever that Intel will continue to invest in the products and technologies that provide Europe and the rest of the world the industry’s best performing processors at lower prices.”
Konter-Klage: Intel wehrt sich gegen Rekord-Kartellstrafe der EU
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