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Netherlands4990 Posts
Intel Fined Record $1.45 Billion in Antitrust Case
By JAMES KANTER Published: May 13, 2009
BRUSSELS — The European Commission on Wednesday fined Intel a record €1.06 billion ($1.44 billion) for abusing its dominance in the market for computer chips to exclude Advanced Micro Devices, which is Intel’s only serious rival.
The E.U. competition commissioner, Neelie Kroes, said the penalty against Intel, the world’s largest chip maker, was justified because the company had skewed competition and robbed consumers of choice.
+ Show Spoiler +
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Yeah i just red about it moments ago.
Quite a fine they gave intel. But this is good, they should proceed and do their job better and throw more fines. There are many companies in many areas who are abusing their dominant stance on the market.
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Intel have such strong ties in distributor channels that i don't see how this will change anything. What exactly have Intel done to deserve this? Their products are just ... superior. Unlike microsoft who abuse the channel relationships, intel is actually worthy of their dominance.
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This is a good thing. but i wonder waht the EU will doe with the fine money..
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Netherlands4990 Posts
Said on the television news: Intel pays manufacturers to NOT manufacture/make any A.M.D. chips/parts
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On May 13 2009 19:55 haduken wrote: Intel have such strong ties in distributor channels that i don't see how this will change anything. What exactly have Intel done to deserve this? Their products are just ... superior. Unlike microsoft who abuse the channel relationships, intel is actually worthy of their dominance.
That's not the point, although I do agree that Intel is better atm. What they did was to pay large companies to only use their products. Dell, Acer, HP, and Media Markt for example. This all happened between 2002 and 2007 (when the performance gap between AMD and Intel products wasn't as skewed). Intel has appealed, so who knows what they will eventually pay.
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On May 13 2009 19:55 haduken wrote: What exactly have Intel done to deserve this? Their products are just ... superior. facepalm
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It would be good if this worked, i.e. the fine actually caused them to lose money in the end.
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Am I oldschool for supporting AMD instead of Intel?
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while intel has been a bad boy, AMD isnt doing so hot lately largely because of its own stupidity. their purchase of ATI didnt time well with the economic slow down.
my friend works at AMD is worried that the company may go down or hand out pink slips.
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Same thing happened with microsoft? Great that this fine happened. A single company dominating a market is never good.
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is awesome32274 Posts
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didnt this happen with microsoft?
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On May 14 2009 10:38 VarmVaffel wrote: Am I oldschool for supporting AMD instead of Intel? Yes.
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On May 14 2009 12:38 Gray[FH wrote: didnt this happen with microsoft?
Yes.
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I don't think Intel really deserved it, but whatever. Even if Intel paid manufacturers to build using Intel chipsets, AMD could do just the same.
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United States17042 Posts
On May 15 2009 01:36 Torenhire wrote: I don't think Intel really deserved it, but whatever. Even if Intel paid manufacturers to build using Intel chipsets, AMD could do just the same.
that's not really a level playing field, and not a precedent that you want to establish. companies should compete on the product that they're selling for business, and not compete on what kind of subsidies or kickbacks they can give to the other people in the supply chain.
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Down with the imperialists !
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this is kinda retarded. there are so many people whining to the EC nowadays over monopolies and it seems they EC is siding with the majority of whiners.
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On May 14 2009 10:53 dybydx wrote: while intel has been a bad boy, AMD isnt doing so hot lately largely because of its own stupidity. their purchase of ATI didnt time well with the economic slow down.
my friend works at AMD is worried that the company may go down or hand out pink slips. QFT, AMD's troubles recently is largely due to its own issues (missing out on mobile computing much?). Intel just has such excellent economy of scale among all other things that its been smacking opponents silly for over a decade.
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On May 13 2009 19:55 haduken wrote: Intel have such strong ties in distributor channels that i don't see how this will change anything. What exactly have Intel done to deserve this? Their products are just ... superior. Unlike microsoft who abuse the channel relationships, intel is actually worthy of their dominance.
AMD had the superior product in the P4 era...that's the period intel was most dirty
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Im just waiting until AMd goes out of business, they are not viable any longer. I live in the austin, texas area and they have a massive company site there. Im in the market for a liquidated coach and executive chair.
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On May 13 2009 19:40 s.Q.uelched wrote:Intel Fined Record $1.45 Billion in Antitrust Case By JAMES KANTER Published: May 13, 2009 BRUSSELS — The European Commission on Wednesday fined Intel a record €1.06 billion ($1.44 billion) for abusing its dominance in the market for computer chips to exclude Advanced Micro Devices, which is Intel’s only serious rival. The E.U. competition commissioner, Neelie Kroes, said the penalty against Intel, the world’s largest chip maker, was justified because the company had skewed competition and robbed consumers of choice. + Show Spoiler +
for anyone that doesn't know what abusing its dominance means, it is the European version of Monopoly. Why they don't use the word instead of the stupid phrase is retarded and baffling.
And I heard on NPR that the specific charges were that it was paying companies/distributors of computers to delay releases of competitors chips/systems among other things.
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United States12607 Posts
The EU fining American corporations for monopoly? No way.
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I still use a 2500+, plays all the games I want to play on the PC. When it comes time for an upgrade I will buy AMD again.
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United States42691 Posts
When a bright kid comes up with a revolutionary idea he needs to be able to start a company and get the ball rolling. That is the core idea that capitalism is based on. That the better solution to the problem of meeting the needs of consumers should be able to compete on an even footing and win by merit alone. By abusing their position Intel slowed the progress of humanity in order to prolong a stagnant status quo for profit. Sure it's not all that important in the grand scheme of things but it's the principle of the thing. They deserve to be fined.
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So with a tl;dr on the article, what exactly did intel do?
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On May 13 2009 19:55 haduken wrote: Intel have such strong ties in distributor channels that i don't see how this will change anything. What exactly have Intel done to deserve this? Their products are just ... superior. Unlike microsoft who abuse the channel relationships, intel is actually worthy of their dominance.
this
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Even if they are worthy of their dominance, and continue to pump out high qualidty products, a monopoly still is a bad thing. If they totally control the market then they get to set prices at whatever they want.
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On May 15 2009 09:02 travis wrote: Even if they are worthy of their dominance, and continue to pump out high qualidty products, a monopoly still is a bad thing. If they totally control the market then they get to set prices at whatever they want. /agree
I don't know much about economy but I do know that a monopoly is the worst thing possible for the consumers in the long term. Even if Intel has better products, a monopoly will make them raise their price and lower the quality to make even more money, and small business trying to develop a new product would have no chance at all and eventually progress will completely stop for processors.
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On May 15 2009 12:05 Xela wrote:Show nested quote +On May 15 2009 09:02 travis wrote: Even if they are worthy of their dominance, and continue to pump out high qualidty products, a monopoly still is a bad thing. If they totally control the market then they get to set prices at whatever they want. /agree I don't know much about economy but I do know that a monopoly is the worst thing possible for the consumers in the long term. Even if Intel has better products, a monopoly will make them raise their price and lower the quality to make even more money, and small business trying to develop a new product would have no chance at all and eventually progress will completely stop for processors.
On May 15 2009 08:59 Savio wrote:Show nested quote +On May 13 2009 19:55 haduken wrote: Intel have such strong ties in distributor channels that i don't see how this will change anything. What exactly have Intel done to deserve this? Their products are just ... superior. Unlike microsoft who abuse the channel relationships, intel is actually worthy of their dominance. this haduken and savio spoke truly.
We are hardly looking at the nightmare scenario of a monopoly here, and even if we will look at one, it won't be because of Intel's business practices, it'll be due to an unrevised patent policy.
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raped but I hope they still sponsor gomtv
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Intel is surperior. People should realize that regardless of intel's intentions of monopoly or not, they will still pwn AMD really badly.
+ Show Spoiler +and wow my core i7 is pwnage /brag
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lol this is BS. I understand MS concerns but come on AMD just sucks.
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On May 15 2009 12:31 WindCalibur wrote:Intel is surperior. People should realize that regardless of intel's intentions of monopoly or not, they will still pwn AMD really badly. + Show Spoiler +and wow my core i7 is pwnage /brag
regardless of this being the current case, if intel has no competition the can sit down for the next 10 years on their core i7 and not develop a single processor, simply muscling every other company out of business.
they deserve the fine.
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i still think Intel should shove the fine into the EU ass.
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On May 15 2009 12:40 Etherone wrote:Show nested quote +On May 15 2009 12:31 WindCalibur wrote:Intel is surperior. People should realize that regardless of intel's intentions of monopoly or not, they will still pwn AMD really badly. + Show Spoiler +and wow my core i7 is pwnage /brag regardless of this being the current case, if intel has no competition the can sit down for the next 10 years on their core i7 and not develop a single processor, simply muscling every other company out of business. they deserve the fine. If Intel tries to sit for 10 years on core i7, even their economy of scale and awesome distributor channels won't save them. People are exaggerating the effects of a monopoly.
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The should have had a bigger fine than that!
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Yes, AMD nowadays is BS (I remember back then, when I was the cool AMD kid)..
But just think of this scenario: AMD (or any other company) overcomes it's problems and brings out a new *superchip* which is vastly superior to any Intel model. Now AMD wants to sell it but no one wants to buy it. Why? Intel has made exclusive contracts with every major customer and forces them to not accept any non Intel products.
Monopolies aren't forbidden, as long as they come "naturally". Contracted monopolies are illegal.
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I remember the good old days when it was cool to use an AMD. They're still right to fine Intel though. It's just not right to make offers like: You can have 20% off our CPU price if you don't include AMD's products into your store. (apparently happened with some big German retailers)
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iNcontroL
USA29055 Posts
my sponsor
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T.O.P.
Hong Kong4685 Posts
On May 13 2009 19:55 haduken wrote: Intel have such strong ties in distributor channels that i don't see how this will change anything. What exactly have Intel done to deserve this? Their products are just ... superior. Unlike microsoft who abuse the channel relationships, intel is actually worthy of their dominance. Not true back in the Pentium 4 days. Amd was superior both in price and power consumption then.
You guys don't understand what Intel did. They set pricing guidelines for major computer manufacturers. If the manufacturers exclusively used Intel chips, then they get to buy the processors for $250 each. If they used 90%+ Intel chips. then the price is $275. If they used 80%+ then the price is $300 each. It wasn't be beneficial for computer manufacturers to buy AMD processors because they'll end up paying more money per processor.
The same thing is happening right now with the Intel Atom processors. Nvidia is complaining about Intel's pricing policy for it's Atom processors. Intel is selling it's Atom processor individually to manufacturers for $45 each. But, if the manufacturers buy the the processor along with Intel's chipset/graphics bundle, it'll only cost $25. Nvidia developed a graphics chipset for the Intel Atom platform that supports HD playback. But despite it being superior to the Intel chipset, it isn't getting into many netbooks because Intel is giving away it's chipsets along with $20.
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