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.