gmb45
13th May, 2009, 05:29 PM
Microchip Giant Intel Fined Record ?950m
Microchip maker Intel has been fined a record ?950 million for breaking anti-competition rules.
The European Union accused the world's biggest computer chip maker of using illegal sales tactics to shut out smaller rival AMD.
The fine exceeded a ?800m monopoly abuse penalty for Microsoft Corp. last year.
California-based Intel has about 80 percent of the world's personal computer microprocessor market - and faces just one real rival, Advanced Micro Devices Inc.
The European Commission says Intel broke EU competition law by exploiting its dominant position with a deliberate strategy to keep AMD out of the market.
It says the company gave rebates to computer manufacturers Acer, Dell, HP, Lenovo and NEC for buying all or almost all their x86 computer processing units, or CPUs, from Intel.
It also paid them to stop or delay the launch of computers based on AMD chips.
Regulators said Intel also paid Germany's biggest electronics retailer, Media Saturn Holding - which owns the MediaMarkt superstores - from 2002 to 2007 to only stock Intel-based computers.
This meant workers at AMD's biggest European plant in Dresden, Germany, could not buy AMD-based personal computers at their city's main PC store.
"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said EU Competition Commissioner Neelie Kroes.
"Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated."
Kroes joked that Intel would now have to change its latest global ad campaign - "sponsors of tomorrow" - to proclaiming "the sponsor of the European taxpayer."
"I can give my vision of tomorrow for Intel here and now: Abide by the law," she added.
EU regulators said they calculated Intel's fine on the value of its European chip sales over the five years and three months that it broke the law.
Microchip maker Intel has been fined a record ?950 million for breaking anti-competition rules.
The European Union accused the world's biggest computer chip maker of using illegal sales tactics to shut out smaller rival AMD.
The fine exceeded a ?800m monopoly abuse penalty for Microsoft Corp. last year.
California-based Intel has about 80 percent of the world's personal computer microprocessor market - and faces just one real rival, Advanced Micro Devices Inc.
The European Commission says Intel broke EU competition law by exploiting its dominant position with a deliberate strategy to keep AMD out of the market.
It says the company gave rebates to computer manufacturers Acer, Dell, HP, Lenovo and NEC for buying all or almost all their x86 computer processing units, or CPUs, from Intel.
It also paid them to stop or delay the launch of computers based on AMD chips.
Regulators said Intel also paid Germany's biggest electronics retailer, Media Saturn Holding - which owns the MediaMarkt superstores - from 2002 to 2007 to only stock Intel-based computers.
This meant workers at AMD's biggest European plant in Dresden, Germany, could not buy AMD-based personal computers at their city's main PC store.
"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said EU Competition Commissioner Neelie Kroes.
"Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated."
Kroes joked that Intel would now have to change its latest global ad campaign - "sponsors of tomorrow" - to proclaiming "the sponsor of the European taxpayer."
"I can give my vision of tomorrow for Intel here and now: Abide by the law," she added.
EU regulators said they calculated Intel's fine on the value of its European chip sales over the five years and three months that it broke the law.