EU court rules Intel to pay $1.4 billion fine for anti-competitive sales practices

[Justin Kahn]

A court in the European Union has recently ruled to uphold a long standing $1.4 billion fine against Intel based on its anti-competitive practices towards AMD. The case dates back to 2009, where the court initially ruled that Intel was offering illegal rebates and contract restrictions to major tech companies like HP, Lenovo, Dell and others in order to box out AMD. The EU competition authority also accused the chipmaker of paying off retailers to only stock Intel-based machines.

Intel then fought back and appealed the ruling saying the court was unaware or ignored the reality of the chip business. It also said regulators used "profoundly inadequate" evidence in the case. However, the recent ruling says that Intel's actions were indeed all part of a long term goal to shut out AMD from its most strategic sales channels and that the company attempted to "conceal the anti-competitive nature" of its actions. 

The fine is actually 4.15% of Intel's 2008 revenue (which amounts to nearly $1.4 billion), a number the Commission deemed fair considering it could asked for as much as 10%. Intel is certainly not happy with the Commission's decision, but after 6 years of back and forth it is not clear whether or not the chipmaker plans to drag out the legal battle any further. "We are very disappointed about the decision. It's a complex case which is reflected in the decision. We will begin evaluating the decision," Intel's Sophie Jacobs said regarding the decision.

Permalink to story.

https://www.techspot.com/news/57095-eu-court-rules-intel-to-pay-14-billion-fine-for-anti-competitive-sales-practices.html

 

[Puiu]

Nothing new. we already knew they would have to pay. the question was how much. but for intel it doesn't matter anymore, they already put AMD in a very difficult position. they lost 10 times that amount in sales, they lost investor reputation and much more. and it shows in their CPU products. they had no money to invest in a new architecture to compete with intel.

 

[Nima304]

This is a drop in the bucket compared to the returns they got out of destroying competition in the CPU market. ARM just isn't there yet, and because AMD isn't in any position to compete, Intel doesn't have any reason to innovate, which we've seen given their latest releases. They should have been fined way more than 4.15% of their revenue, and I'd argue that they should be fined more than the 10% they could have been charged.

 

[GhostRyder]

Agreed, Intel basically got a slap on the wrist for what they were doing. But at least its public knowledge...

 

[Fbarnett]

Who gets the 1.4 billion?

 

[Axle Grease]

Who gets the 1.4 billion?

"Where does the money go?

Once final judgment has been delivered in any appeals before the Court of First Instance (CFI) and the Court of Justice, the money goes into the EU’s central budget, thus reducing the contributions that Member States pay to the EU."

I grabbed that from wwwDOTeubusinessDOTcom

 

[Guest]

I dont see how im reducing my costs...

 

[Skidmarksdeluxe]

Who gets the 1.4 billion?

That's exactly what I wanted to ask.

 

[fimbles]

Who gets the 1.4 billion?

Its to pay for the expenses of fat cat politicians.

Breakfast at the ritz aint cheap you know

 

[Guest]

I made a decision to post a comment regarding all the decisions, about the decision and decisions people would make based on the decision due to there being so many decisions in the end of the article.

This wasnt an easy decision... you decide!

 

[Guest]

So, Intel screwed over AMD, the EU catches them and the penalty is that Intel pays the EU and AMD is still screwed. Justice....???

 

[Maeryaenus]

No matter how much it is, but is too late for a penalty. Intel has impeded AMD to sell, and nowadays Intel own the market, especially the mobile one. Sadly, the fact is done and now things can't be done to be right again. Intel grow bigger and AMD can't compete. Intel steal the future for their own.

 

[Gopal Bhat]

So, Intel screwed over AMD, the EU catches them and the penalty is that Intel pays the EU and AMD is still screwed. Justice....???

I know, it's an absolute joke.
AMD should be awarded a large portion of the fine as they are the ones who lost out. But I guess they should have taken Intel to court themselves?

Plus that 4% figure is ridiculous. It should be closer to 20% imo.

Oh ok, ruin the competitions business and if you get caught we'll slap you on the wrist with a 4% annual revenue (for that year) fine. Then you can enjoy the spoils for the rest of your years knowing your opposition has been crushed.

Unbelievable.

Intel have great chips due to immoral business practices and AMD have lower performing chips but are a great company.
It leaves you between a rock and a hard place with which cpu to use/recommend.

Hope AMD get back on their feet.

 

[captaincranky]

Since none of Intel's, "victims", will ostensibly benefit from the EU courts "fining" Intel, this really isn't much more than a disguised "patent lawsuit", designed to fill the coffers of the EU.

It's just a subterfuge for an additional "VAT" tax, the EU courts couldn't get passed via the EU legislative process
[quote="Gopal Bhat, post: 1409345, member: 329086"

Oh ok, ruin the competitions business and if you get caught we'll slap you on the wrist with a 4% annual revenue (for that year) fine. Then you can enjoy the spoils for the rest of your years knowing your opposition has been crushed..[/quote]You know, I've been around here long enough to have listened to all the gamer's ridicule and scorn with respect to Intel CPUs. Quite a mean and mouthy bunch they were too.

Now Intel's on top, and the tears are flowing for AMD. I say, "tough s***". Apparently, AMD got beat at its own "game", so to speak.

So, if you were on top, and now you're not, it seems to me AMD is culpable for that, not Intel for making a better product.

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