AMD sueing Intel
By subsistence
@subsistence (102)
Philippines
May 11, 2009 11:15am CST
"EU Completes Intel Antitrust Case Investigations, Likely to Find it Guilty: Sources The European Union trade regulatory body are expected to announce their verdict on the high-profile antitrust case against Intel on Wednesday. The company has been booked under charges relating to market malpractice, by influencing computer hardware manufacturers to postpone and/or cancel launches of their products that use CPUs made by its rival AMD. Intel allegedly abused abused its market position in the CPU industry, to cripple the growth of AMD in Europe, by offering special rebates to computer hardware manufacturers to restrict or eliminate the use of AMD processors. The company allegedly even influenced retailers by offering inducements to sell computers only with Intel processors installed.
The first violation by Intel is that it allegedly set percentages o fits own chips that it wanted PC makers to use, according to sources. Examples include NEC, which was told that only 20 percent of its products could use AMD processors. All Lenovo-made notebooks use Intel processors, while 95% of HP's product line features Intel processors, sources said.
The second violation was where Intel bribed PC makers to delay or scrap the launch of their products that feature AMD processors, to favor Intel best. The Commission will characterize the payments as "naked restrictions" to competition, the sources said.
When found guilty, the commission will take two forms of action against Intel. A date will be set, following which, Intel cannot offer the rebates and other inducements EU finds illegal. A fine will also be collected from Intel. The commission can charge as much as 10% of Intel's annual revenue as fine, which was $38 Billion in 2008. The trade commission's decision set for Wednesday is said to be extremely complex and lengthy, in order to safeguard the antitrust enforces against any possible legal challenges from Intel, which is likely to face one of the highest fines in Europe's antitrust history, according to Brussels-based lawyers. Intel's trouble in Europe began in 2000, when AMD complained that Intel was blocking its access to the European market." - Read from another website
Whoa! didn't know that Intel got into this type of trouble. Poor Intel if AMD wins this one then they'd have to pull out a lot of cash. And quite frankly Intel didn't have to go this far. They didn't need that kind of market monopoly. They were doing fine in the recent years.
1 response
@ebook_freak (1511)
• India
17 May 09
That was a very good discussion. And a long one too.
All I have to say is: Computer world is very wide. It has many hidden and unrevealed facts and technologies. Sometimes more than one company stumbles into it and eachone claims they found it.
All we should do is be happy with what is good.
1 person likes this
@subsistence (102)
• Philippines
17 May 09
Yes, there are a lot of companies that goes into the computer business. For example, I heard rumor that Nvidia is now thinking of going into the processor making company. Well I do wish them good luck though.
@ebook_freak (1511)
• India
17 May 09
Nvidia is a good company.
They are experts in Graphics and cards. I think they can really do well in processor making...