Intel Seeking More Time on Antitrust Reply

U.S. chipmaker Intel Corp. has asked for more time to respond to antitrust charges levelled by the European Commission, an official at the European Union's executive arm said today. "We have received a request for an extension from Intel and it is still under consideration," said the official, who asked not to be identified. The Commission in July charged Intel with slashing prices below cost and offering huge rebates in an illegal attempt to drive smaller competitor Advanced Micro Devices Inc. out of the market. The Commission gave Intel until Oct. 8 to respond.

The chipmaker's general counsel said in July that Intel followed the law and that the Commission had made mistakes in its charge sheet. The EU executive has locked horns recently with other U.S. chipmakers, charging Rambus in August with claiming "unreasonable royalties" and opening formal proceedings against Qualcomm in a similar case last week. The Commission is the EU's ultimate antitrust regulator and has powers to fine companies up to 10 percent of their global annual revenues for competition abuses.

News source: Reuters

Report a problem with article
Previous Story

Tested: New Hybrid Hard Drives From Samsung and Seagate

Next Story

Samsung Adds Broadcom Chips for 3G Phones

14 Comments

Commenting is disabled on this article.

If Intel offers lower prices, how exactly is that anti-competitive? I thought that's PRO-competitive, by having competitive prices.

You won't be saying that in 10 years when AMD is gone and Intel is the only chipset maker around, what would you do then?

They're running at a loss, but also I think the rebates are also used in a nother uncompetitive manner, to get exclusivity so they'll only go to Intel for chips.

Not sure how any of that helps the consumer, perhaps today we can enjoy below-cost CPUs but in a few years ...

The key is taking a loss on the chips. This essentially is dumping.

Do you honestly think that Intel won't jack up the prices to make that money back once AMD is out of the market?

4tehlulz said,
The key is taking a loss on the chips. This essentially is dumping.

Do you honestly think that Intel won't jack up the prices to make that money back once AMD is out of the market?


Intel isn't selling chips below marginal cost. They're making a profit right now, in case you haven't realised.

While the EU of course is within their jurisdiction to pursue companies for antitrust, it seems like that's all they've been doing in the past few years.

Oh, and drafting legislation to move the British to the metric system. *sigh*

IMO the only productive thing the EU has brought to Europe is the Euro and the easier clearing of immigration.

Ledward said,
Intel isn't selling chips below marginal cost. They're making a profit right now, in case you haven't realised.

Guess you should have read the article as that's exactly what Intel have been accused of doing:

Quote - Article
The Commission in July charged Intel with slashing prices below cost and offering huge rebates in an illegal attempt to drive smaller competitor Advanced Micro Devices Inc out of the market.

While the EU of course is within their jurisdiction to pursue companies for antitrust, it seems like that's all they've been doing in the past few years.

Really? Well seeing as there's so much they do, you can keep up to date here: http://europa.eu/press_room/index_ns_en.htm

Oh, and drafting legislation to move the British to the metric system. *sigh*

Well that's funny because they canned that a month ago. Also it's pretty pathetic that we cling on to a system given that for decades the metric system has been taught in our schools. Running dual systems is simply stupid and confusing (ask NASA if you don't believe me!), and the UK agreed to make this change in 1965 and then again in 1974.

IMO the only productive thing the EU has brought to Europe is the Euro and the easier clearing of immigration.
Well it's plain to see that you don't know much about the EU, and even then it appears that you've underestimated the difficulty of what they have achieved a single currency across many countries and 'the EU zone' are remarkable acheivements.

Obligatory complaining about anti-US bias (while ignoring that US companies bring these complaints to the Commission) post.

4tehlulz said,
Obligatory complaining about anti-US bias (while ignoring that US companies bring these complaints to the Commission) post.

Yep, it's extreme-patriotism, at least that's what i call it.

I wonder why nobody ever mentions the other countries investigating this and other antitrust cases:

http://www.theregister.co.uk/2007/09/11/so..._against_intel/

South Korean news reports have said the inquiry has focused on allegations Intel ran roughshod over antitrust laws by pressuring computer makers to avoid using chips made by Advanced Micro Devices.

http://www.internetnews.com/bus-news/article.php/3697541

AMD's newest ally in its antitrust battle with Intel is the American Antitrust Institute (AAI), which sent a letter to U.S. Federal Trade Commission Chair Deborah Majoras urging the FTC to formally investigate "Intel’s monopolization conduct in microchips."

Of course, you can chose to simply ignore the fact that Intel will, most probably, be being investigated by 3 seperate bodies in 3 seperate countries. Surely that provides some sort of proof that Intel are operating unfairly.

Also should point out that Intel just happened to lose a hell of a lot of emails that were pertinent to the antitrust case

AMD wants Intel to recover missing e-mails

The lost volume is the equivalent to the e-mail 220 people would generate in a year, said Mark Samuels, an attorney at O'Melveny & Myers for AMD.

So, anyone going to have a go at the South Koreans? Or petition the FTC not to investigate Intel?!

EU is pretty corrupt. First Microsoft now Intel...what's next...Seems they try to take money from any company they can get their hands on. They should realize how reliant they are on US businesses and back off.

Rezox said,
EU is pretty corrupt. First Microsoft now Intel...what's next...Seems they try to take money from any company they can get their hands on. They should realize how reliant they are on US businesses and back off.

Corrupt? Based on what? Who is corrupting them, the fact they're going after companies should atleast tell you they're not being paid off by monopolies, or any company for that matter.

Maybe first Microsoft because they were breaking EU rules (the rule of land in the EU), now Intel because they are also doing something wrong ...

There are differences between the EU and US competition authorities, the US looks out for competition by ensuring the consumer has a choice today, the EU looks out for competition by ensuring companies can compete faily against each other.

But I'm sure we should just do everything the US do, I'll get the form out for becoming the 51st state and we can live happily ever after under Dubya.

SimpleRules said,

Corrupt? Based on what? Who is corrupting them, the fact they're going after companies should atleast tell you they're not being paid off by monopolies, or any company for that matter.

Maybe first Microsoft because they were breaking EU rules (the rule of land in the EU), now Intel because they are also doing something wrong ...

There are differences between the EU and US competition authorities, the US looks out for competition by ensuring the consumer has a choice today, the EU looks out for competition by ensuring companies can compete faily against each other.

But I'm sure we should just do everything the US do, I'll get the form out for becoming the 51st state and we can live happily ever after under Dubya.

Maybe. However, I do think the EU/EC should think before acting sometimes. (see Windows XP N edition)

EU wouldn't be doing anything if there was not money involved. That's why they are corrupt. You don't see this happening in the United States where the government will slap a random fine on a company for slashing their prices. Please think before you speak. This is capitalism and companies can do what they want in order to compete in a free market.

Why don't you travel to Europe sometime and tell me why everything operates under cash. People don't want to pay the ridiculous taxes that the EU levy. Corruption is spread all over the EU. Money makes the EU go 'round.