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Microchip Giant Intel Fined Record £950m

Microchip maker Intel has been fined a record £950 million for breaking anti-competition rules.

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news.sky.com
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Tachyon_Nova3421d ago

Wow, that'll chew deep into their bank account.

green3421d ago (Edited 3421d ago )

"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."

I don't see anything wrong with that because to me it's business but the other reasons are seriously justified

"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."

50CALheadshot3421d ago (Edited 3421d ago )

lol, thats where microsoft got their strategy.

"delay ps3 multiplats, timed exclusivity, gamestop fanboys"

lol, wow. just wow . Classic Microsoft copy and paste

Lumbo3421d ago

Quote green:
"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."

I don't see anything wrong with that because to me it's business but the other reasons are seriously justified

Easy: it is not illegal per se, as long as REAL competition exists. But if one company has a market dominating position, like Intel with over 70% of the desktop CPU market you have to respect certain limitations on what you may do. One common limitation is that you may NOT offer special refunds if the receiver limits the market access of the other market participants. In this case Intel only gave the rebates if you agreed to sell nearly ALL your systems with their stuff, and made sure you also prominently shoved Intel systems down your customers throats. The reasoning being that if a real market exists, no shop could afford to exclude one brand, and even if they did, numerous other same sized shops wouldn't , resulting in lost sales for the shop.

Kurylo3d3421d ago

are you saying that if you are too successful you shouldnt give out discounts for people who order your parts in bulk. In essence thats all intel is guilty of. Its not their fault that AMD their main competitor provides processors that arent on their level. Intel is growing and shouldnt be slowed down by its competitor.

Lumbo3421d ago

You are missing the point, the issue is NOT giving rebates for bulk orders, but giving rebates for bulk orders IF the ordering party EXCLUDES your competition from the market and if you at the same time have a market dominating position. That is, and rightly so, forbidden by anti-competition laws.

Because the goal of such tactics is NOT to give customers better prices, but to kill the competition and then to dictate the prices as you see fit.

3421d ago
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be_wrong3421d ago

Whoah! thats serious money theyre gonna pay and its the employees and not the executives that are gonna be affected by this! Wouldnt it be more justifiable to punish the ones who thought and implemented the idea rather than the whole company?

be_wrong3421d ago

Lets just say in this economic situation that everyone is in it really doesnt help to be employed by heartless devils.

50CALheadshot3421d ago

yeah, true. ny is phucked up right now. i shouldve became an actor or something.

BBCnewsrocks3421d ago

"Intel, always 5hittin' on the little guy."

for those of you who got the reference :P

thematrix12983421d ago

I used to be all AMD but damn they really need a make over. Their cpus all suck nowadays. I don't think anything wrong with giving rebate but "also paid them to stop or delay the launch of computers based on AMD chips." is not cool.

Sorry AMD, you don't have performance edge.

Ju3421d ago

Well, not true. Latest Ph-II-X4 is competitive for its market segment. Not everyone wants an i7.

AstroZombie13421d ago (Edited 3421d ago )

or needs one.

Also this line totally just made me lol.

"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."

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