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News

    13th May 09

 Intel fined by European Union Commission for antitrust violation

It looks so nasty to know world's number one semiconductor vendor fined US$1.45 billion by European Union Commission for anti trust violation.
The EC decision for fining stated specifically that:
1. "Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought      all, or almost all, their x86 CPUs from Intel".
2. "Intel made payments to major retailer Media Saturn Holding from October 2002 to December 2007     on condition that it exclusively sold Intel-based PCs in all countries in which Media Saturn Holding is     active."
3. Intel "interfered directly in the relations between computer manufacturers and AMD. Intel awarded     computer manufacturers payments - unrelated to any particular purchases from Intel - on condition     that these computer manufacturers postponed or cancelled the launch of specific AMD-based     products."

Intel and AMD are always trying to be at loggerheads with each other for any advance made by any one of them. In fact recently from past 5/6 years, processors from both the companies are equally good with some marginal differences, which hardly matters for a PC performance. There is no bad choice in choosing either of these company's products. It's looks to be the mindset and personal orientation towards a brand rather than some real advantage.

Paul Otellini, Intel Corporation president and CEO said, "Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace - characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal."

It's hard to fully believe the above Intel statement. Even in Indian market, when we walk through PC selling shops, there is a kind of subtle promotion for Intel branded PCs. Few years back, AMD was quite visible in the market but over the period, AMD has taken back seat both in brand visibility and the offers the shop owner present to the buyer. These tactics few may call as modern marketing techniques but for some other it's deliberate attempt to keep competitors out of the market.

Here's what AMD says,

"Today's ruling is an important step toward establishing a truly competitive market," said Dirk Meyer, AMD president and CEO. "AMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers."

"After an exhaustive investigation, the EU came to one conclusion - Intel broke the law and consumers were hurt," said Tom McCoy, AMD executive vice president for legal affairs. "With this ruling, the industry will benefit from an end to Intel's monopoly-inflated pricing and European consumers will enjoy greater choice, value and innovation."

It's like pointing fingers, which is again not good for the sake of customer and industry.

When the technology edge is waning away in processor market, Intel and AMD are looking for market-tricky tracks to lead in the market.



          
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