Intel fined $1.45b by European Union for “abuse of dominant position”
Posted on May 13th, 2009 at 1:01pm by bile Tags: abuse, Acer, AMD, argumentum ad consequentiam, argumentum ad hominem, argumentum ad metum, argumentum ad miserecordiam, argumentum ad populum, argumentum ad verecundiam, bare assertion fallacy, competition, Competition Commissioner, consumers, Dell, EU, Europe, European Union, free market, governments, HP, Intel, intellectual property, Japan, law, Lenovo, Microsoft, monopoly, NEC, Neelie Kroes, nVidia, Obama administration, Paul Otellini, profit, regulation, South Korea, Technology, Wall Street, x86Although the Obama administration is indicating that it will be more aggressive about enforcing antitrust regulations, the European Union has been pursuing high-profile cases for years, having levied a large fine against Microsoft back in 2004, and hitting the software giant again last year. The latest target of the EU’s Competition group is the chipmaker Intel and, this morning, the EU announced that it too would face a hefty fine: slightly over 1 billion, which comes in just shy of $1.5 billion. Intel is already promising to appeal but, in the meantime, it’s going to have to drop over half a year of its current profits into a bank account in case its appeal fails.
The full decision, which is over 500 pages long, hasn’t yet been released to the public, but a summary of the EU’s case is available. It focuses primarily on the company’s pricing practices during the years 2002-2005, when Intel was facing growing competition from AMD in the desktop and server space. The EU authorities also cite an instance of similar practices in the notebook space in 2007, a time when that market was rising in prominence.
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