Intel, PC retailers raided by EU officials

By on February 13, 2008, 9:59 AM
The European Commission yesterday carried out an unannounced inspection at Intelís offices in Germany as well as some retailers selling products using the companyís chips, as part of an investigation into Intelís possible anticompetitive practices directed at rival AMD.

The chipmaker was charged with monopoly abuse last July after the EU decreed that it had undercut AMD by offering substantial customer rebates to computer makers for buying most of their CPUs from Intel, and inducing them to delay or cancel products using AMD chips. Of course, Intel responded that its conduct has been nothing but lawful, pro-competitive and beneficial to consumers.

Intel is lined up to attend a hearing in Brussels next month to face charges that it abused its dominant position in the CPU market and could face fines of up to 10% of its yearly global revenue if it is found to have broken the rules. To put this into perspective, last year Intelís revenue amounted to $6.98 billion.

User Comments: 6

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icye said:
Much of the fault lies with AMD with their lack of innovation and not being competitive with their current line of processors. The processor power/price ratio of AMD is not great compared to Intel's and computer manufacturers know that very well.
howzz1854 said:
EU's crusade on Intel has lasted way before AMD's innovation went into drain. it had appeared in the news even since the AthlonXP days. so this is nothing new and has nothing to do with AMD's current product line and R&D.
viperpfl said:
I agree somewhat with what the EU is doing. Just like Microsoft made exclusive deals with computer manufacturers, Intel is doing the same thing. Computer manufacturers like it cause it saves them money but never passing off the savings to the consumer. This prevents competition and the consumer ends up losing in the end by paying more. What needs to happen is prevent companies from doing exclusive deals so competition will florish.
foogan said:
[b]Originally posted by viperpfl:[/b][quote]Computer manufacturers like it cause it saves them money but never passing off the savings to the consumer. This prevents competition and the consumer ends up losing in the end by paying more.[/quote]What are you on? Do you not know how cheap you can buy a PC now? Remember how much a Pentium 66 cost when it came out??It is because of shady anti-competitive practices by Intel and the big M that we can buy PCs so cheaply.My ex bought an HP Core2Duo with 2gb RAM, 320gb hard drive, and Windows Vista (I would've preferred XP) from in August '07 for $450CDN +taxes. Don't try and tell me that consumers aren't reaping the benefits.
Wildrat said:
AMD is just being a crybaby because they can't keep up. I remember building my first computer, I bought a 200 MHz Intel processor and it cost me bad, after that I used AMD processors exclusively swearing off Intel like people swear off Microsoft products. After all these years I am back to using Intel procs. The AMD procs never seemed to live up to their speed claims, and then the instability with some software. I learned to work around these issues to stay with AMD. I don't think you could pay me now to go back to AMD unless they can prove themselves like in the early days. Certain European companies are notorious for this behavior and they brought it to the EU. The EC should be made to pay for Intel's loss in productivity. What happen to free trade, competition, and FREEDOM. I live in the supposed "Land of the Free" and my every move is watched, even when I'm in my own home. the real problem is government and who has put more cash into the politicians pockets. Anyway................
xdiesel said:
the whole amd / intel war has been going on for years and has went back and forth from 1 to the other. amd produced the dual core first in a rush and in a sloppy way, but intell just took there time to make a better product and thats why ther are better at the moment but times are a changing again and when amd perfect there new cores they will be better, then intell will answer back with sonething new, It is the way it has been and might always be unless they get some new competition. Granted amd has always been second best to intel but in the mid 90's till early 2000's if u wanted the best gaming comp u had a AMD proccessor, and with AMD's aquisition of ATI and intell's ever growing partnership with Nvidia who knows what the future will hold ?Also hears intel working on an "80" core proccessor Hmm :)
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