Sydney, Australia \u2014 May 14, 2009 \u2014 The European Commission today found Intel guilty of abusing its dominant position in the global x86 microprocessor market, saying that \u201cIntel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years. Such a serious and sustained violation of the EU\u2019s antitrust rules cannot be tolerated.\u201d\u00a0 The Commission also stated that \u201cthere is evidence that Intel had sought to conceal the conditions associated with its payments.\u201d The EC decision requires Intel to change its business practices immediately and fines Intel a record EUR 1.06 billion (US $1.45 billion).<\/p>\n
\u201cToday\u2019s ruling is an important step toward establishing a truly competitive market,\u201d said Dirk Meyer, AMD president and CEO.\u00a0 \u201cAMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers.\u201d\u00a0<\/p>\n
\u201cAfter an exhaustive investigation, the EU came to one conclusion \u2013 Intel broke the law and consumers were hurt,\u201d said Tom McCoy, AMD executive vice president for legal affairs.\u00a0 \u201cWith this ruling, the industry will benefit from an end to Intel\u2019s monopoly-inflated pricing and European consumers will enjoy greater choice, value and innovation.\u201d<\/p>\n
The EC decision stated specifically that:
\n\u2022\u201cIntel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel\u201d.
\n\u2022\u201cIntel made payments to major 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.\u201c
\n\u2022Intel \u201cinterfered directly in the relations between computer manufacturers and AMD. Intel awarded computer manufacturers payments – unrelated to any particular purchases from Intel – on condition that these computer manufacturers postponed or cancelled the launch of specific AMD-based products.\u201d<\/p>\n
Intel has so far failed to convince any antitrust enforcement agency that its business practices are lawful and pro-consumer.\u00a0<\/p>\n
In 2008, the Korea Fair Trade Commission (KFTC) issued a 26 billion won fine (approximately $25.4 million USD) saying that Intel\u2019s abuse of its dominant position included coercing and paying customers millions of dollars on the condition that they use only Intel chips, delay launches of AMD products, and\/or not develop any new products with AMD chips.\u00a0\u00a0 The KFTC also found that, \u201cSouth Korean consumers had to buy PCs at higher prices as domestic PC makers were forced to buy Intel\u2019s pricier CPU.\u201d\u00a0 In addition to a fine, the KFTC ordered Intel to stop the practice of offering payments to PC makers conditioned upon them not doing business with AMD.\u00a0 Intel is in the process of appealing the ruling.\u00a0<\/p>\n
In 2005, the Japan Fair Trade Commission (JFTC) ruled that Intel had violated the country\u2019s anti-monopoly laws by illegally forcing full or partial exclusivity with five Japanese PC makers.\u00a0 Intel did not appeal the ruling.<\/p>\n
In the United States, the U.S. Federal Trade Commission (FTC) and New York Attorney General\u2019s office are investigating Intel for abuse of its monopoly position.\u00a0 In 2005, AMD filed private litigation in the US District Court of Delaware, which is scheduled for trial in spring 2010.<\/p>\n
About AMD \u00a92009, Advanced Micro Devices, Inc. AMD, the AMD Arrow logo, ATI, the ATI logo, Catalyst, Radeon, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.\u00a0 Other names are for informational purposes only and may be trademarks of their respective owners.<\/p>\n","protected":false},"excerpt":{"rendered":" Sydney, Australia \u2014 May 14, 2009 \u2014 The European Commission today found Intel guilty of abusing its dominant position in the global x86 microprocessor market, saying that \u201cIntel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years. Such a serious and sustained<\/p>\n
\nAdvanced Micro Devices (NYSE: AMD) is an innovative technology company dedicated to collaborating with customers and technology partners to ignite the next generation of computing and graphics solutions at work, home and play. For more information, visit http:\/\/www.amd.com<\/a><\/p>\n