AMD 'breaks free', creates site dedicated to Intel's antitrust ruling
[Thanks to everyone who sent this in]
antitrust posts
Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years.Intel was ordered to cease the illegal practices immediately and has three months from the notification of the decision to pay up. Of course, Intel will appeal and this will drag the litigation on for years as did Microsoft. Regardless, we'll bet that AMD, who raised the complaint against Intel back in 2000, will be celebrating come dawn in Sunnyvale.
There are many tried and true methods for beating your competition in the free-market. Product innovation seems to work as does a proprietary ecosystem of peripherals, media, and services that keep customers locked-in for life. Or you can take Intel's approach: pay computer makers and retailers "to postpone or cancel" products containing CPUs from AMD, Intel's chief rival. That's the allegation it faces in the EU which, according to Reuters, has completed its antitrust investigation and is preparing to announce its decision on Wednesday. According to Reuters' sources, the European Commission will fine Intel for the violations discovered over the last eight years and order changes to Intel's business practices. It remains to be seen if the related fine exceeds the $655 million levied against Microsoft in 2004. But given the EU's distaste for anti-competitive practices, we're not expecting Intel to get off easy -- self-proclaimed "rock star" status or not."Microsoft's tying of Internet Explorer to the Windows operating system harms competition between web browsers, undermines product innovation and ultimately reduces consumer choice."Microsoft has 8 weeks to reply to the charge. It's worth noting that while Apple bundles its Safari browser with OS X, Apple commands a much, much smaller share of the operating system and web browser markets globally, particularly outside of the US. The EU's ruling does, perhaps, shed some light on why Apple's App Store is suddenly stocked with a variety of browsers for the hot selling iPhone, eh? Regardless, we have a feeling that the Norwegian cats behind Opera are feeling pretty smug right about now; Google too, as it kicks back licking its Chromium chops on the road to dominating "The Cloud."
Man, the EU is really not too fond of Intel, is it? Adding to all the other antitrust charges filed against the chipmaker, the friendly grey suits at the European Commission have slapped on an additional three: paying a "leading European retailer" not stock AMD products, giving incentives to PC makers to switch to Intel chips, and paying an unspecified company to delay the launch of an AMD-based product. For its part, Intel is reacting like it always does when the Europeans get prickly: by steadfastly denying everything. Intel has eight weeks to file a formal response, but as with all of these cases, we wouldn't expect a resolution any time soon.
This is gonna leave a mark: Intel was just handed a $25 million slap on the wrist due to its questionable kickbacks to Korean computer manufacturers. The Korea Fair Trade Commission dropped the fine as punishment for the rebates Intel slipped to Samsung and Trigem in order to remain exclusive to its chips. Intel dolled out about $37 million in rebates -- under the guise of co-marketing campaigns -- over 2.5 years. While it is unclear whether or not Intel forced the manufacturers into any exclusive arrangement, it seems the commission believes such a clause was implied. Meanwhile, Intel is already under the European Union's microscope for the same practices. Intel plans to appeal the ruling, and adds, "We'll never do something that violates Korean law. We don't believe we have ever done that." While such practices remain under the legal radar here in the States, this practice isn't so kosher elsewhere.
The EU has doled out some pretty hefty fines in the past, but it looks like Nintendo is pushing back against the one it got slapped with back in 2002, with the company now saying that it was "unfair, illegal, even shocking." That fine (some 140.1 million Euros, or about $220 million), was the result of some alleged price fixing on Nintendo's part back during the SNES-fueled glory days of 1991 to 1998, during which time European Union regulators say Nintendo colluded with seven different distributors to raise hardware and software prices. For its part, the EU commission maintains that the fine "was not of a capricious nature, or based on wild estimates," and that it "was for an infringement that was considered very serious." No word on Nintendo's next move just yet, but if past appeals of EU rulings are any indication, they certainly seem to be facing an uphill battle.
Sure, most of the Microsoft antitrust action is going down in Europe nowadays, but Uncle Sam's lingering judgment against Redmond is still kicking around -- Judge Colleen Kollar Kotelly (remember her?) just issued a ruling extending the consent decree against Microsoft for another two years. The judge said that the company has been extremely cooperative with the government thus far, but that "the extreme and unforeseen delay" in acquiring technical documentation from Bill and the boys requires that monitoring continue. That pretty much leaves things at the status quo, although we're not exactly holding our breath for anything to change once the consent judgment actually does expire.





