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Hefty fine for Intel

In Technology and Business on May 14, 2009 at 5:26 pm

 From the commission : Intel got slapped with a 1,06 billion euro fine for anti competitive monopoly like business practices. This is the largest fine of its sort in the history of the EU. The commission declared that Intel is using its dominant position in the microprocessor market to trumple over its competition, especially the smaller AMD (the commission’s decision was based on an initial lawsuit filed by AMD back in 2000). The commission declared that Intel was actually inducing large pc manufacturers (ex: Dell, HP,Acer,Lenovo, NEC) to favor Intel microprocessors over those of the competitor by using business practices such as special offers, vouchers, credit notes etc… For these special offers to take effect, the manufactures had to deploy Intel processors in about 80% of their manufactured goods (ex: pcs). Intel business practices also restricted the channels where the particular enterprise could sell the pcs that did not include Intel processors (ex: only through the internet) including an agreement that delayed the offering of the products hosting competitor devices 6 months after the equivalent Intel product hit the market.

The commission claims that Intel also financed large retail chains such as Saturn and MediaMarkt to carry only equipment that hosted Intel processors.

Intel plans to appeal.