Intel appeals massive antitrust fine
Intel is appealing an antitrust fine levied against it by the European Commission in May.
The chipmaker lodged its appeal Wednesday in the European Court of First Instance against the 1.06 billion euros ($1.5 billion) fine--although the company has yet reveal the precise legal basis for the appeal.
"We felt the EC decision was incorrect, and that evidence was ignored or misinterpreted," an Intel representative told ZDNet UK on Thursday. "We believe the Commission ignored the realities of the microprocessor market, which is highly competitive."
However, the Commission said Thursday that it had made the right decision in levying the fine. "The Commission is confident its antitrust decision is legally watertight," spokesman Jonathon Todd told ZDNet UK.
In May, the Commission found that Intel had made direct payments to Media Saturn Holding, which owns the European electronics retail chain, Media Markt. The Commission said the payments were designed to ensure that Media Markt would only stock computers with Intel x86 chips.
However, Intel has denied the charges and denied making any direct payments to retailers or customers. Intel Senior Vice President Bruce Sewell has said that Intel did offer discounts or "incentives in the form of funds to launch marketing campaigns." Sewell also denied that Intel had put any conditions on the rebates it offered to computer manufacturers.
On Thursday, Intel's representative said consumers have actively benefited from the workings of the microprocessor market.
"Since the Commission investigation started in 2001, (chip) prices have fallen by more than half," the representative said. "We think consumers have benefited from falling prices."
Intel on Thursday declined to give any specific details of the legal grounds for its complaint against the Commission decision. However, ZDNet UK understands that the European Court of First Instance will publish details of the appeal in several weeks' time.
Tom Espiner of ZDNet UK reported from London.
That said, I do question the ruling. As I understand it, this was an issue that came about because of friction between AMD and Intel. Since both are American companies, why would it not be an issue taken to court in the US? And the issue at hand was that Intel was doing something to pressure European computer makers to use Intel chips? What companies? Or, were those the same companies the rest of us buy from (largely based in the US, Japan, or China)? So, perhaps one of those three countries might have grounds to complain. In any case, this was for the benefit of the European people, right? And how were the Europeans hurt? I guess the concern is that Intel might wipe AMD out entirely and then increase prices?
Yet, it was OK for AMD to clone the x86 in the first place, right? Personally, I had trouble with that. I appreciate competition as much as the next person, but if this were the music industry, somebody would (rightfully) complaining that the lyrics were stolen and used in another song.
seriuosly....do you have a brain?
The companies maintain that Kroes has too much power, because she gets to supervise investigations, make a ruling, as well as decide the punishment.
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How could one person decide everything?
Cool!
How nice for a working vacation travel!!
I got nothing against intel they make good silicon. I doubt they have a valid apeal though. The EU brought enough evidance to bear to tack a 1.5 billion fine, intels rebutal is a resounding "Nuh Ah lier lier pants on fire". Intel has almost blacked out the media and has sealed the records on the case, they don't want something publicly known. 1.5 might be a little overkill but intel has already worked the fine on the books as a loss. The appeal will be to lessen the blow and reduce the fine wich is excesive.
The big thing we will see is lawers (hat make more money this week than any of us will probably see in a lifetime) locking down court records and makeing sure to keep this from hurting them in the us in both fed court and civil. Intel did something and they know it will bite them in the arse and they are simply doing damage control.
personaly I can't wait to see the legal fallout hit the states. The EU was the first to pull the trigger, I'm waiting to see the US shooting gallery.
"Sorry, all we have is a $10 billion note here- do you have change?"
This has been from the start a blatant money grab. They need a new cash cow since Microsoft has wised up to their games.
Here is a better idea - INTEL should provide the funding for the development of a much "Quieter Engine" for the "CONCORDE".... bottom line - faster travel time for "Europeans" to get to and from the locations out of Europe where INTEL's products are being sold and which are not available in Europe.
This country's officials most be out of their mind if they think that they should grow monetary wise at the expense of American Companies doing business there.
MS alone has paid them millions, good for MS to sell a copy of Win 7 without the browser, as soon as MS concluded on this method to avoid the law suit some moran came out saying that, that was not enought and not what the UK was looking for, of course not, they looking to make as much money from any American Company in any which way they can.
Anytime you here a law suit from UK is always target at American Companies.
I AM VERY SORRY FOR THE USERS IN THE UK, please believe me when I said I wish all UK users the best, and I am not implying the users have anything to do with the Stupidity of the UK Governmental and greedy leechers over there.
- by DV2 July 23, 2009 2:43 PM PDT
- I really think that these Europeans (who always seem to be on vacation) are jealous of the creativity, productivity and profitability of American computer companies. They do everything they can to hamper them. Another example of that are the ISO 9000 standards which do nothing but introduce massive amounts of bureaucratic overhead.
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