VERY BIG fine to Intel by EU

[jaclaz]

I am surprised noone posted anything about the matter yet.

From BBC:

http://news.bbc.co.uk/1/hi/business/8047546.stm

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 chips over those of Advanced Micro Devices (AMD).

Intel has announced that it will appeal against the verdict.

....

Ms Kroes joked in her own news conference that Intel would now have to change its latest advertising slogan from "sponsors of tomorrow" to "the sponsor of the European taxpayer".

....

B)

jaclaz

[DigeratiPrime]

I am not surprised, I've heard from people working from OEM's about these rebates; seems to be a common practice. Also the EU seems to like going after big *US* companies *cough* because it's easy money. With that said I am not familiar with the details, but bribery is a criminal offense.

[GrofLuigi]

It's nothing new...

GL

[jaclaz]

It's nothing new...

GL

Well, the decision of the EU commission is new, on 13th May 2009, of course the claim is not.

Until then, AMD said that Intel used unfair commercial practices, now the EU has judged this allegation to be true.

jaclaz

Edited May 15, 2009 by jaclaz

[GrofLuigi]

I've heard from people working from OEM's about these rebates

of course the claim is not.

I was going for that, because I remembered an old article that explained the "intel inside" "incentives" in many details. Unfortunately, couldn't find it on Google.

GL

[CoffeeFiend]

Lots of us saw that coming for sure, and not only in the EU.

the EU seems to like going after big *US* companies *cough* because it's easy money

Could be, but regardless of that, Intel was most definitely deserving of it.

Giving companies rebates based on NOT selling your competitors' products? That's not exactly "playing nice"...

[Thunderbolt 2864]

Yep, I read that, and I must say, I'm very disappointed with Intel. They deserved it, just because they are the leader of the CPU market doesn't give them the right to further abuse their power and try to roadblock their rival by giving bribes to their partners not to sell AMD products. They played with fire and got burnt at the end.

[jaclaz]

I was going for that, because I remembered an old article that explained the "intel inside" "incentives" in many details. Unfortunately, couldn't find it on Google.

Some details are given here:

http://europa.eu/rapid/pressReleasesAction...;guiLanguage=en

Apart Media Saturn Holding that is in "plain text", who are A, B, C, D, E ?

Names should be:

http://www.reuters.com/article/technologyN...E5491Q820090510

NEC

HP

DELL

LENOVO

???

Let's try coupling them:

HP=B

NEC=C

DELL=D ? or DELL=A?

http://www.msnbc.msn.com/id/23076019/

then LENOVO either A or D

What else? Who is E?

jaclaz

[pointertovoid]

That's a VERY BIG fine, but the EU has VERY BIG budget needs as well...

I don't remember exactly what, but the US gov had done something unpleasant to the EU just before, so the instant was ripe for this action.

What I strongly dislike with such a justice is that the decision is made by a (inter-) governmental agency. The EU Commission itself decides a fine. This is not the way a democracy works, and as a direct consequence, its work doesn't meet democratic standards neither.

That is, national governments compose a EU Commission which both makes laws and the application of laws. Even worse, the EU Parliament does not oversee the EU Commission: it can't veto a decision by the Commission, and if Lisbon's Treaty passes, the Parliament won't even be allowed to decide what it discusses nor what law it would like to "suggest" (as it couldn't decide against the Commission) to the Commission. The Commission concentrates legislative, executive and judicial powers in one hand - exactly the first step a democratic Constitution would avoid.

And then you get so-called "justice decisions" and "fines" which may serve just the politicians' views at some time. That's no Justice.