Intel Fined $1.45 Billion

by CXOtoday Staff    May 14, 2009

The European Commission has found guilty of hampering sales of rival
chipmakers. The case, which has dragged on for nearly nine years, finally ended
yesterday with Intel being fined $1.45 billion and asked to change its business
practices.

The European Commission accused Intel of offering monetary benefits to manufacturers
if they refrained from or delayed selling products from its rival AMD. In
particular, the commission said Intel had made payments to 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.

"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," said Tom McCoy, AMD executive vice president for
legal affairs.


Intel and AMD have been involved in a number of lawsuits in recent years.
Currently, Intel holds nearly 80% of the global semiconductor market, while AMD
has an approximately 10-15% stake.

Related links:

Intel Accuses AMD of Breaching Patent Agreement
AMD to Formally Launch Semiconductor JV

Using Same Tech Not a Disadvantage, Says Intel