13 May 2009
EC fines Intel £1billion
The European Commission has imposed a fine of €1.06billion on Intel for violating EC Treaty antitrust rules. The EC found Intel 'abused a dominant market position by engaging in illegal anticompetitive practices to exclude competitors from the market'.
Competition Commissioner Neelie Kroes, pictured, said: "The Commission finds that Intel did not compete fairly, frustrating innovation and reducing consumer welfare in the process."
According to the EC, Intel maintained a 'dominant position' in the x86 market between October 2002 and December 2007 through two specific forms of illegal practice.
First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 cpus from Intel. Intel was also found to have made direct payments to a major retailer on condition it stocked only computers featuring Intel x86 cpus. "Such rebates and payments," the Commission found, "effectively prevented customers – and ultimately consumers – from choosing alternative products." Secondly, Intel was also determined to have made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors' x86 cpus and to limit the sales channels available to these products.
The Commission has ordered Intel to cease the illegal practices immediately 'to the extent that they are still ongoing'.
Author
Graham Pitcher
Supporting Information
Websites
http://europa.eu
http://www.intel.com
Companies
Intel Corporation (UK) Ltd
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