Corporate & Securities Law

Intel Fined

By David Fischer

Reuters, via the New York Times, reports that the European Commission has fined Intel$1.45 billion.

The European Commission fined Intel a record ?1.06 billion on Wednesday for abusing its dominance in the computer chip market to exclude its only serious rival, Advanced Micro Devices.

The European Union?s competition commissioner, Neelie Kroes, said the penalty against Intel, the equivalent of $1.45 billion, was justified because the company had skewed competition and denied consumers a choice for chips.

Ms. Kroes said Intel had ?used illegal anticompetitive practices to exclude its only competitor and reduce consumers? choice ? and the whole story is about consumers. ? She said Intel?s practices had ?undermined innovation.?

…

Paul Otellini, chief executive of Intel, said the company would appeal.

?We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace,? Mr. Otellini said. ?There has been absolutely zero harm to consumers.?

Giuliano Meroni, president of A.M.D.?s operations in Europe, said the decision would ?shift the power from an abusive monopolist to computer makers, retailers and above all PC consumers.?

Ms. Kroes said Intel had pursued a strategy aimed mainly at excluding A.M.D. by paying computer makers and retailers to postpone, cancel or avoid A.M.D. products entirely.

The European Commission, which is the E.U.?s executive arm, also found that Intel ?went to great lengths to cover up its anticompetitive actions,? Ms. Kroes added.

Full post as published by Antitrust Review on May 13, 2009 (boomark / email).