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Intel claims EU fine is without proof, excessive

updated 11:50 am EDT, Tue September 15, 2009

Intel criticizes EU fine

Intel in European Union court files today fought against the recently imposed $1.45 billion fine for its alleged antitrust violations. The American processor designer believed the European Commission didn't provide enough evidence that Intel practices hurt AMD's European PC business in an "immediate, substantial" way. It instead claimed that AMD was actually gaining share for some of the five-year period covered by the fine and that AMD's struggles were linked more to specific PC builders and regions.

The antitrust case accused Intel of using its dominance of the processor market in Europe to squeeze AMD out between 2002 and 2007. Among its tactics, the company purportedly engaged in unfair "dumping" by charging PC vendors much less for processors than AMD could afford to match. It may also have directly paid more influential vendors to use Intel chips for most or all of their systems, and may have discouraged retailers from stocking AMD-based systems.

Intel has already formally appealed against the fine, but added in its more public challenge that, even if the verdict were upheld, the fine was "disproportionate" to the actual damage done.

The European case isn't the only one Intel has faced in recent years. It has already been forced to change its behavior in Japan and South Korea and is in the middle of ongoing investigations by the US Federal Trade Commission and New York state following similar complaints.



By Electronista Staff
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Comments

  1. TomSawyer

    Fresh-Faced Recruit

    Joined: Jan 2008

    -3

    Europe+capitalism=

    oxy-MORON

  1. danviento

    Fresh-Faced Recruit

    Joined: Dec 2005

    +1

    small surprise

    Funny how AMD, german based and german subsidized chip manufacturer is the one bringing this complaint since they can't seem to keep up...

    This isn't the first time the EU has gone after large, successful American-based business when it beats out their home team.

  1. shawnde

    Fresh-Faced Recruit

    Joined: Apr 2008

    +1

    re: Small surprise

    Actually AMD is an American company. They have a fab in Germany (shared with IBM), but that's all. They're predominantly an American company. Intel has fabs all over the world.

    You sort of have a point there, because they EU at times has done that, but I'm sure the US has done it more (recent case of Microsoft vs. Alcatel and Microsoft vs. i4i).

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