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EU slaps Intel with formal antitrust charges

Steven Parker   on 27 July 2007 - 14:07 · 37 comments & 15400 views

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As suspected, the European Union formally lodged antitrust charges against Intel, accusing the CPU maker of using illegal methods to compete against its main rival AMD. "I can confirm the statement of objections has been sent," European Commission spokesperson Ton Van Lierop said in a statement given to Reuters. This action represents the culmination of years of antitrust investigation by the EU—and is likely beginning of a very unpleasant experience for Intel. While the exact Statement of Objection (SO) has not yet been made public, the EU charges that Intel used illegal methods to coerce OEM computer manufacturers to ship systems with Intel rather than AMD processors.

The investigation in Europe has been going on for a long time. Intel's European offices were raided by EU investigators in 2005. Last year, AMD filed a formal complaint with the Bundeskartellamt, the German Federal Cartel Office, accusing a German and Intel of entering into an agreement under which the German retailer would only sell Intel PCs in exchange for undisclosed payments from Intel. The EC quickly took over that investigation from the Bundeskartellamt.

View: Full Article @ ArsTechnica

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(2 replies) #1 paulhaskew on 27 Jul 2007 - 15:32
guess the cash cow of M$ is dwindling so they gotta hit up another company for some more money to keep the Euro high...
#1.1 zaber on 29 Jul 2007 - 17:14
AMD asked the EU to look into Intel's business practices.

Now if you had your house robbed and you reported it would you expect the police not to investigate and charge someone if they found evidence that they were guilty?
#1.2 theyarecomingforyou on 30 Jul 2007 - 03:20
Quote - (paulhaskew said @ #1)
guess the cash cow of M$ is dwindling so they gotta hit up another company for some more money to keep the Euro high...

Do you honestly believe that or are you just trying to be cool? If you do then that is very sad and it shows you obviously have little grasp on economics or the reality of what these businesses get up to. Intel and Microsoft have BOTH abused their position, putting pressure on OEMs in an anti-competitive manner. It is good that the EU is protecting the interests of its citizens rather than pandering to big business like the US government.
(2 replies) #2 jwjw1 on 27 Jul 2007 - 16:12
maybe some day the Europeans will make something on their own...
#2.1 vetneufuse on 27 Jul 2007 - 16:42
there are already a bunch of nice products coming out of Europe... Red-Gate makes some nice SQL Server tools... GFI (German) makes a good anti-spam program for Exchange... lots of nice stuff coming out of Europe...
#2.2 +Chicane-UK on 27 Jul 2007 - 18:23
Quote -
maybe some day the Europeans will make something on their own...


What a ridiculous comment to make. You know, as if Charles Babbage one of the fathers of modern computing contributed nothing... and Tim Berners Lee creating the World Wide Web as we know it.. or the jet engine as designed by Sir Frank Whittle and Dr. Hans von Ohain.

Think before you open your mouth.

Last edited by Chicane-UK on 27 Jul 2007 - 18:29
#3 rec_kris on 27 Jul 2007 - 17:02
I wonder who's next on their list.

The EU is just like the NAACP. Always bitching about something, trying to get something else for free.

WHY WOULD THEY NOT WANT FREE MONEY?
#4 ir0nw0lf on 27 Jul 2007 - 17:05
I'd bet Microsoft is sending a few cases of vasoline to Intel with a note that says, "Haha, your turn... Enjoy the gift, you'll need it!"
(1 reply) #5 Croquant on 27 Jul 2007 - 18:26
Not that either MS or Intel will every pay up to the EU extortion.
Go ahead, EU: Find them guilty. Good luck collecting, though.
#5.1 zaber on 29 Jul 2007 - 17:18
They will if they want to continue selling in Europe.
The money Microsoft generates from sales in Europe far exceeds what the fine is.

AMD would LOVE for Intel to pull out of the European market.
(1 reply) #6 +majortom1981 on 27 Jul 2007 - 18:30
IF i was the U.S. and the EU is doing this i do something. Its startign to get to the point where the EU is handing out fines to EVERY american company.

If they keep the U.S. government will have to do something.
#6.1 zaber on 29 Jul 2007 - 17:10
Yes because breaking laws is OK!!

It's not as if the EU targets only American companies, BAE systems the UK's biggest arms manufacturer is currently under investigation for bribery by the EU.
(2 replies) #7 Joni_78 on 27 Jul 2007 - 18:50
This was all over the news couple of years ago, Intel indeed used illegal methods (also illegal in USA, but they made that crime in GERMANY). So why shouldn't they be punished?

If I remember it correctly, police found that Intel payed computer manufacturers to keep AMD out.

Last edited by Joni_78 on 27 Jul 2007 - 18:56
#7.1 MrCobra on 28 Jul 2007 - 10:21
Quote -
If I remember it correctly, police found that Intel payed computer manufacturers to keep AMD out.

Correct. Why they kept evidence against themselves is beyond me.
#7.2 MvT Cracker on 30 Jul 2007 - 01:25
Quote - (Joni_78 said @ #7)
This was all over the news couple of years ago, Intel indeed used illegal methods (also illegal in USA, but they made that crime in GERMANY). So why shouldn't they be punished?

If I remember it correctly, police found that Intel payed computer manufacturers to keep AMD out.


as an intel reseller I get REBATES for products I sell and thats perfectly legal even if I do not pass that on to the customer or to the customer right away
#8 Brodel on 27 Jul 2007 - 18:58
I don't really see what the problem is. If Intel are paying retailers to only sell Intel PC's then in the long run it's harming the customer... for example the people above that seem to be complaining.
#9 ishtar on 27 Jul 2007 - 20:00
Ha Ha Ha heh heh heh
(2 replies) #10 thornz0 on 27 Jul 2007 - 20:26
i don't understand why the EU, aside from milking more cash from US companies, is taking this on (it would be different if one of the companies was home grown). seems to me that if they have a problem with the way two US companies are competing, they should inform the US govt and present any any evidence, and let them deal with it... i mean, its not like the US shys away from taking these on when it needs to.
#10.1 zaber on 29 Jul 2007 - 17:02
If the crime is committed in Europe don't you think that the European authorities should deal with it.

If a European murdered a European in America don't you think he should be tried the US rather than in the European courts?

Last edited by zaber on 29 Jul 2007 - 17:20
#10.2 theyarecomingforyou on 30 Jul 2007 - 03:32
Quote - (thornz0 said @ #10)
(it would be different if one of the companies was home grown)

That's absolutely ridiculous - I think it just shows the mentality of US corporations that think they are above the law. It's very sad if you think the EU sits there just picking on innocent US companies that couldn't possibly have done anything wrong. NEway, there is no mention of any fine being imposed upon Intel - this is just an objection to their illegal business practices.

Sometimes I honestly think this forum is full of idiots that have little grasp of how the world works and only listen to political propaganda put out to support a nationalist agenda. If a company breaks the law then that needs to be addressed... even IF the EU was only targeting US businesses (of which there is NO evidence to support) that STILL means that they broke the law in the first place regardless of whether businesses from within the EU did the same.

Quote -
i mean, its not like the US shys away from taking these on when it needs to

No, but it's happy to back down as soon as money is waved in its direction.
#11 SimplyPotatoes on 27 Jul 2007 - 20:28
About time
(1 reply) #12 helios01 on 27 Jul 2007 - 21:00
No wonder some electronics cost more than in the US, companies have to save up for the inevitable EU hit. Worst part is customers are the ones that end up paying for this.
#12.1 theyarecomingforyou on 30 Jul 2007 - 03:37
Customers pay if the EU DOESN'T act. If companies like Microsoft and Intel destroy the competition that leaves them able to increase their prices, and thus their profit margin, with no competition in place to stop them - this is the EXACT reason for anti-competitive legislation. And again, there has been no fine imposed upon Intel. What you said is just plain wrong.
#13 Elendil on 27 Jul 2007 - 23:46
It's really not that difficult concept to understand.. if you want to do business in a foreign country, you'll have to obey the local laws. In US it might be ok to force a retailer to stop selling competitors products via bribery/extortion but it isn't legal in EU.
#14 +chconline on 28 Jul 2007 - 01:37
Ok, then Intel and Microsoft can stop selling products in the EU. They will get through like crazy anyway
#15 +Octol on 28 Jul 2007 - 02:10
Personally, I've had it up to my nosehairs with the EC. But in this case, if the people at Intel really were paying OEMs to shut out AMD instead of just making better processors to improve their market share (which we now all know they can), then they deserve a stick upside their heads for being STUPID!

I'm not for the kind of serial extortion that the EC has pulled on Microsoft, but in this instance, maybe one good fat fine would show them the error of their ways.
(2 replies) #16 EduardValencia on 28 Jul 2007 - 04:27
An the european crusade against american companies continues

America,wake up!
#16.1 badcompany on 28 Jul 2007 - 11:56
Yep, the we are continuing to make you our bitches....it's got nothing to do with anti-competitiveness which harms the consumer at all. Nothing. Yeah sure, Intel were paying to keep competition out of the market, but who needs competition anyway? The less choice the better I say.
#16.2 theyarecomingforyou on 30 Jul 2007 - 03:43
@EduardValencia - I'm sure what you meant to say was:

"And still our US businesses try to manipulate markets unfairly for their own capitalist gain. America needs to wake up and teach its businesses to operate fairly and with respect to foreign markets."
(1 reply) #17 Digix on 28 Jul 2007 - 04:39
EC have givin' Intel a fair cop, Intel fully was aware of what it was doing was illegal chose to do it anyway so they can pay the price.

the deal with microsoft is a bit iffy but this one just blunt idiocy on intel behalf but they would have been fully aware this was coming, so they deserve it.
#17.1 jwjw1 on 28 Jul 2007 - 16:04
"Brother can you spare a Dime"
#18 Unwonted on 28 Jul 2007 - 17:24
Another mock trial, more billions for the EU. Wake me when things change.

Corporations in the EU should think long and hard about their future; it's only a matter of time before the eye turns to them.

(3 replies) #19 southside on 29 Jul 2007 - 01:00
<<removed>>

Last edited by bangbang023 on 30 Jul 2007 - 12:54
#19.1 MrCobra on 29 Jul 2007 - 04:54
It doesn't matter what Intel "let" anyone do or not do. The fact is that they are guilty. It was proven against them in Germany and I suspect it won't be long before it is proven elsewhere. When a company has to pay off others not to sell their competitors merchandise then they really aren't much of a company to begin with and have no faith in their own products.

Good job with the HUGE font. You deserve an A.
#19.2 theyarecomingforyou on 30 Jul 2007 - 03:50
Obviously the huge font makes your point more important and more truthful than everyone else's so it would be silly of me to disagree with you.
#19.3 +Chicane-UK on 30 Jul 2007 - 06:56
Oh my god. You are just the most insanely naieve person i've ever seen on these forums. Not going to argue the point because clearly in your crazy little world there is only one scenario for everything, and regardless of any well reasoned argument you'll just stick your fingers in your ears and do the "I'M NOT LISTENING TO WHAT YOU SAY. INTEL ARE GREAT. AMD SUCK.. BLAH BLAH BLAH" so.. nuts to it. But if you really think that is the case with the CPU vendors you're clearly enormously dellusional.

And how you've not being warned for the "**** you" comment is beyond me.
#20 black_death on 29 Jul 2007 - 06:13
Is anyone else worried about a supposedly democratic organization that only has a very small amount of their officials democratically elected that makes laws about about most of Europes trade? And don't say they're like NAFTA or the WTO becase they didn't establish a universal currency and they dont always appear in the news about pointless antitrust cases that do nothing but make companies that make products that Europeans want anyways lose money.

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