Corporate & Securities Law

EU to Fine and/or Sanction Intel?

By David Fischer

The Financial Times Deutschland reports, according to Marketwatch, that

the European Union’s competition authority will take action later this year against Intel Corp. over the semiconductor giant’s sales and distribution practices.  The Financial Times Deutschland said the EU had acquired enough evidence to act to keep Intel from selling its microprocessors at a discount to PC companies.  The paper said the EU could fine Intel up to 10% of its annual sales, or $4.1 billion.

Thompson Financial (via Forbes.com) reports that:

The European Commission is planning to bar some of Intel Corp.’s sales practices to curb the company’s market power in Europe, Financial Times Deutschland reported, citing sources in Brussels.

Commissioner for competition Neelie Kroes has already made a ‘factual’ decision, the paper said, with the decision to be published in late summer.

According to the EU plans, Intel will have to stop marketing its processors at discount prices to PC-manufacturers.

In addition, the EU intends to ban Intel from paying marketing cost subsidies to retailers, if Intel demands exclusivity in return.

I would link to the FTD article but my German is poor.  Perhaps one of my fluent-in-German co-bloggers can link to and/or report on the original article.

Full post as published by Antitrust Review on May 30, 2008 (boomark / email).