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AMD welcomes Intel fine

by Scott Bicheno on 13 May 2009, 11:56

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD)

Quick Link: HEXUS.net/qar7l

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“Abusive monopolist”

In its statement announcing a fine of over a billion euros against Intel, the European Commission revealed that the investigation was prompted by a series of complaints from rival chip maker AMD, dating as far back as 2000.

It comes as no great surprise, then, that AMD is pleased with the verdict reached today. Although its response is somewhat muted so far.

"The EU decision will shift the power from an abusive monopolist to computer makers, retailers and above all consumers," said Giuliano Meroni, president of AMD EMEA.

This is by no means a foregone conclusion, however, as Intel has already vowed to appeal the verdict. But it should definitely affect Intel's business practices, in Europe at least, and put AMD in a stronger position to object in future.

 

UPDATE - 14:40 13 May 2009

A couple more senior execs at AMD have issued statements:

"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 VP 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."

 



HEXUS Forums :: 11 Comments

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I think the first of many such fines for Intel in the next 12 months. Wonder if AMD can get any of this money for compensation due to loss of sales..
lol wont happen
what exactly is this fine for?
matty-hodgson
what exactly is this fine for?

“violating EC Treaty antitrust rules”

In particular:

“by engaging in illegal anticompetitive practices to exclude competitors from the market for computer chips called x86 central processing units (CPUs)”

These practises included:

“Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel”

and

“Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs.”

which had the result that:

“effectively prevented customers - and ultimately consumers - from choosing alternative products.”

as well as the practises of:

“Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors’ x86 CPUs ”

and

“to limit the sales channels available to these products.”

which had the result that:

“these practices constituted abuses of Intel’s dominant position on the x86 CPU market that harmed consumers throughout the EEA. By undermining its competitors’ ability to compete on the merits of their products, Intel’s actions undermined competition and innovation”
Thing is, AMD won't see much of that money if anything.