Software Blog

Wednesday, May 13, 2009

EU fine for Intel 1.06 billion

The European Union has imposed on an Intel heavy fine of 1.06 billion euros and this is prosecution is abuse of dominant position and anticompetitive practices illegal. The Commission ordered the company to discontinue use immediately to ensure that these practices will ensure that decision on compliance.

According to the EU in the period running from October 2002 and up to 2007 "Intel had a dominant position in the global market of Cpu x86, at least 70% market share."

"The Commission - continues the note - found that Intel has made use of two specific forms of illegal practices. First, it gave full rebates or partially hidden on the manufacturers of computers provided that the purchase of all or almost all x86 processors they needed. "

And then he made "direct payments in favor of a major distributor provided that it sell only computers with x86 processors. These rebates and payments have actually prevented the customers and, ultimately, for consumers to turn to alternative products ".

According to Brussels on the chip giant has "made direct payments to manufacturers of computers in order to stop or delay the launch of specific products containing x86 processors type of competitors and to limit the sale of circuits used by this product."

"Intel - said Competition Commissioner Neelie Kroes - has damaged millions of European consumers by acting deliberately to keep competitors off the market for computer processors for many years. An infringement so severe and so sustained over time of EU antitrust rules can not be tolerated. "

This is the highest penalty ever imposed by the EU Commission. The unenviable previous record belongs to Microsoft, which in 2008 was forced to pay 899 million euros.

posted by Hadson @ 8:45 PM