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EU slaps a $1.45bn fine on Intel for anti-competitive practices

by Amitjha | May 13, 2009 at 02:25 am

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The giant of Chip making has been fined with $ 1.45 bn by the EU.The reason for imposing the fine is anti competitive practices.In deep blue ocean of opportunities small fish is always under threat to be eaten by the giants, same is the story in the computer world.But unfortunately in this ecosystem of finance there is no end of greed and means to satisfy those greed.

Latest move clearly proves that it is not just the quality of product but the backdoor settings that makes it successful, although by unfair means.

Computer chipmaker Intel has been fined a record 1.06bn euros ($1.45bn; £948m) by the European Commission for anti-competitive practices.

It dwarfs the 497m euro fine levied on Microsoft in 2004 for abusing its dominant market position.

The Commission found that between 2002 and 2007, Intel had paid manufacturers and a retailer to favour its products.

The investigation followed a complaint by the world's second-biggest chipmaker Advanced Micro Devices (AMD).

The Commission said that Acer, Dell, HP, Lenovo and NEC had been given hidden rebates if they only used Intel chips.

It also found that Media Saturn, which owns Europe's biggest consumer electronics retailer Media Markt, had been given money so that it would only sell computers containing Intel chips.

"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said Competition Commissioner Neelie Kroes.

"Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated."

Last year, Intel made 80.5% of the microprocessors in PCs, while AMD made 12% of them.

The Commission has also ordered Intel "to cease the illegal practices immediately to the extent that they are still ongoing".