AMD Responds to EC Ruling against Intel and Record Setting Fine
AMD Responds to EC Ruling against Intel and Record Setting Fine
Posted 05/13/2009 at 10:01am
| by Paul Lilly
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When AMD heard the news that the European Commission had found Intel guilty of anticompetitive business practices and hit the No. 1 chip maker with a record setting $1.45 billion fine, we imagine the response behind closed doors was something along the lines, "Woohoo!!," followed by a series of high-fives. After all, AMD has been crying foul for years over allegations that Intel was issuing illegal rebates and other incentives to vendors and retailers to stop them from selling AMD chips. But while AMD execs are probably dancing on their desks in jubilation, the No. 2 chip maker's official response took on a decidedly more business-like (though no less giddy) tone.
"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."
In a press release, AMD went on to say that Intel has so far failed to convince any antitrust enforcement agency that its business practices are lawful and pro-consumer. AMD points out past fines and rulings against Intel on similar matters, including a 26 billion won fine (about $25.4 million USD) in 2008, a ruling in 2005 by the Japan Fair Trade Commission finding that Intel had violated the country's anti-monopoly laws, and an ongoing investigation by the FTC here in the States with a trial scheduled for spring 2010.
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MeTo
May 14, 2009 at 9:59am
Amen to that I could not have said it better.
Linux Mint,Duel boot/Vista,AMD Athlon+ x2 5600,3 Gig ram,500 Gig HDD,ATI 1300 Video.
Nipyf2
May 13, 2009 at 12:05pm
Intel is a very corrupt company. It has the best products on the market but just don't defend intel. Just realize their corrupt and keep using their procs. Remember when AMD was cheaper and faster and dell didn't offer any AMD procs.
truk007
May 13, 2009 at 10:57am
How will all of that money get distributed? Do the European consumers get a piece?
pcwizmtl
May 13, 2009 at 6:27pm
But where is the justice?
The money hardly ever goes to whom was hurt, and if it ever does, it takes so much time the cost of living rises and your settlement is worth peanuts.
and we keep getting screwed...
strykyr
May 13, 2009 at 10:43am
Maybe if AMD/ATI would make something that actually worked they way I expect it to based on what the packaging says it will do, they wouldn't be #2....
Caboose
May 14, 2009 at 8:03am
I've hadno problems with AMD products. Just upgraded to a Phenom II x4 940 BE 2-days ago and love it. Works amazingly! And the low temps are awesome!
I'd for sure say that it's a PEBKAC issue.
-= I don't want to be dead, I want to be alive! Or... a cowboy! =-
comptech08
May 13, 2009 at 10:25am
I would like to see these consumers that were hurt.
I am a consumer and I dont hurt, let alone give a crap.
B.A.Frayd
May 13, 2009 at 10:32am
I understand your confusion. Let me translate: The EU can't produce a company as innovative and successful as Intel so they have to sue in order to maintain a sense of importance and influence. more >> Options >>
MeTo
May 13, 2009 at 10:31am
We were all affected by price and AMD is/was driven/nearly out of busines.
Linux Mint,Duel boot/Vista,AMD Athlon+ x2 5600,3 Gig ram,500 Gig HDD,ATI 1300 Video.
B.A.Frayd
May 13, 2009 at 10:41am
The cost of computing has gone DOWN dramaticaly over the last ten years. Rulings like this lead only to one thing, higher prices for the consumer. Intel will have no choice but to pass the cost along to the consumer. In all likelyhood, this will be appealed forever and the final ruling will probably be much lower.
As far as AMD goes, they have no one else to blame but themselves for where they are. Their latest high end products simply do not compete with Intel, so their sales have suffered as a result.
penguinboy
May 13, 2009 at 12:40pm
AMD did screw up, and they are
laregely to blame for being in the position the find themselves in, but
Intel's anti-competitive practices are simply making the situation
worse. Only Intel will benefit if AMD goes out of business. You won't see the cost of computing decreasing anywhere near as quickly if that happens.Intel has billions in cash reserves. They can just eat the fine, and they probably won't pass it on to consumers. The dynamics of supply and demand tell us that raising chip prices to recoup the cost of the fine is not a good idea. That would decrease the number of chips they sell, and could actually decrease the profit they make overall.
As for the justification of the EU protecting AMD because it's a European company, that doesn't take into account the fact that Japan, South Korea, and the US are going after Intel.
unixfool
May 13, 2009 at 12:03pm
>As far as AMD goes, they have no one else to blame but themselves for
where they are. Their latest high end >products simply do not compete
with Intel, so their sales have suffered as a result.
Then why the illegal rebates? I doubt that this will raise prices. And sure, innovation spurs competitiveness, but only when the playing field is equal. I'd much rather see Intel fined for something that they illegally did than to see nothing happen and end up with only Intel as a selection of CPUs...that's a monopoly. Imagine if you only could buy a Ford and nothing else.
comptech08
May 13, 2009 at 11:29am
ahhh now i can see how it hurts the consumer. The EU is very good at predicting the future. There idiots.
MeTo
May 13, 2009 at 10:32am
No comment what a waste.
Linux Mint,Duel boot/Vista,AMD Athlon+ x2 5600,3 Gig ram,500 Gig HDD,ATI 1300 Video.
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