[Vision2020] Europe Fines Intel a Record $1.45 Billion in Antitrust Case

[Kenneth Marcy]

Europe Fines Intel a Record $1.45 Billion in Antitrust Case 

BRUSSELS — The European Commission fined Intel a record €1.06 billion on 
Wednesday for abusing its dominance in the computer chip market to exclude 
its only serious rival, Advanced Micro Devices.

The European Union’s competition commissioner, Neelie Kroes, said the penalty 
against Intel, the equivalent of $1.45 billion, was justified because the 
company had skewed competition and denied consumers a choice for chips.

Ms. Kroes said Intel had “used illegal anticompetitive practices to exclude 
its only competitor and reduce consumers’ choice — and the whole story is 
about consumers. ” She said Intel’s practices had “undermined innovation.”

The previous record fine for similar abuses in the European Union was €497 
million imposed on Microsoft in March 2004 for blocking competition in 
markets for server computers and media software.

http://www.nytimes.com/2009/05/14/business/global/14compete.html?ref=technology 

It appears to me that if this fine is upheld through its coming appeals that 
the potential for processor price drops will be significantly reduced. In 
other words, you and I likely will be paying for this decision with our next 
computer purchase.


Ken