<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 22, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Intel faults EU as it reveals e-mails to back anti-trust fine
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(BRUSSELS) The European Commission yesterday published correspondence that it said supported a record anti-trust fine against Intel, but the move brought a swift denial from the US computer chip giant.
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</TD></TR><TR class=caption><TD>Stout denial: EU conclusions were wrong, both factually and legally, says the chip giant </TD></TR></TBODY></TABLE>European Union competition regulators fined Intel a record 1.06 billion euros (S$2.2 billion) in May, after a nine-year investigation, claiming the chip maker abused its stranglehold on the semiconductor market to crush its main rival AMD.
In one such instance US personal computer giant Dell, in 2003, noted that Intel's retaliation 'could be severe and prolonged with impact to all lines of business' if Dell were to start buying chips from AMD, according to the EU's findings.
Another e-mail from an executive of Chinese high-tech giant Lenovo cited in the published EU decision spoke of Intel's 'naked restrictions' on business partners.
'Late last week Lenovo cut a lucrative deal with Intel. As a result of this, we will not be introducing AMD based products in 2007 for our Notebook products,' the December 2006 e-mail said.
There was similar evidence concerning an Intel deal with Hewlett-Packard.
Intel, which is contesting the ruling and the fine, swiftly responded that the EU conclusions were 'wrong, both factually and legally'.
An Intel spokesperson said: 'The Commission relied heavily on speculation found in e-mails from lower-level employees who did not participate in the negotiation of the relevant agreements.'
However a counterpart at AMD was satisfied that 'the facts are clear: Intel broke the law. Finally, the world can see the evidence that Intel has tried to hide for so long'.
The Commission has been upset by reports that it missed evidence that could have boosted the US computer chip giant's case.
'There have been some suggestions that our decision was based rather more on allegations than facts,' EU Commission spokesman Jonathan Todd said.
'But with the publication of this decision you can see for yourselves precisely the facts on which the decision was based and how Intel broke the law,' he told reporters in Brussels.
The Commission, which investigates anti-competitive practices, 'found that Intel generally sought to conceal the conditions in its arrangements with PC manufacturers and MSH (Germany's Media Saturn Holdings, Europe's largest PC retailer).'
For example a retail agreement with Dell 'was not subject to a written agreement but was concluded orally at various meetings', the commission found.
Europe's top competition watchdog had charged Intel with using illegal loyalty rebates to squeeze rivals out of the market for central processing units (CPUs) - the brains inside personal computers.
The Santa Clara, California-based company dominated the 22 billion euro market for the ubiquitous x86 CPUs with a 70 per cent share during the more than five years it was accused of breaking EU antitrust rules.
'Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years,' EU competition commissioner Neelie Kroes said in May.
Intel's fine topped the previous record 899 million euros Microsoft was ordered to pay last year for failing to cooperate with the Commission in its anti-trust battles with the US software giant.
Mr Todd, the Commission spokesman, stressed that the EU was keeping a close watch on Intel following the fine to ensure that it wasn't continuing with its old practices. -- AFP
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Intel faults EU as it reveals e-mails to back anti-trust fine
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(BRUSSELS) The European Commission yesterday published correspondence that it said supported a record anti-trust fine against Intel, but the move brought a swift denial from the US computer chip giant.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Stout denial: EU conclusions were wrong, both factually and legally, says the chip giant </TD></TR></TBODY></TABLE>European Union competition regulators fined Intel a record 1.06 billion euros (S$2.2 billion) in May, after a nine-year investigation, claiming the chip maker abused its stranglehold on the semiconductor market to crush its main rival AMD.In one such instance US personal computer giant Dell, in 2003, noted that Intel's retaliation 'could be severe and prolonged with impact to all lines of business' if Dell were to start buying chips from AMD, according to the EU's findings.
Another e-mail from an executive of Chinese high-tech giant Lenovo cited in the published EU decision spoke of Intel's 'naked restrictions' on business partners.
'Late last week Lenovo cut a lucrative deal with Intel. As a result of this, we will not be introducing AMD based products in 2007 for our Notebook products,' the December 2006 e-mail said.
There was similar evidence concerning an Intel deal with Hewlett-Packard.
Intel, which is contesting the ruling and the fine, swiftly responded that the EU conclusions were 'wrong, both factually and legally'.
An Intel spokesperson said: 'The Commission relied heavily on speculation found in e-mails from lower-level employees who did not participate in the negotiation of the relevant agreements.'
However a counterpart at AMD was satisfied that 'the facts are clear: Intel broke the law. Finally, the world can see the evidence that Intel has tried to hide for so long'.
The Commission has been upset by reports that it missed evidence that could have boosted the US computer chip giant's case.
'There have been some suggestions that our decision was based rather more on allegations than facts,' EU Commission spokesman Jonathan Todd said.
'But with the publication of this decision you can see for yourselves precisely the facts on which the decision was based and how Intel broke the law,' he told reporters in Brussels.
The Commission, which investigates anti-competitive practices, 'found that Intel generally sought to conceal the conditions in its arrangements with PC manufacturers and MSH (Germany's Media Saturn Holdings, Europe's largest PC retailer).'
For example a retail agreement with Dell 'was not subject to a written agreement but was concluded orally at various meetings', the commission found.
Europe's top competition watchdog had charged Intel with using illegal loyalty rebates to squeeze rivals out of the market for central processing units (CPUs) - the brains inside personal computers.
The Santa Clara, California-based company dominated the 22 billion euro market for the ubiquitous x86 CPUs with a 70 per cent share during the more than five years it was accused of breaking EU antitrust rules.
'Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years,' EU competition commissioner Neelie Kroes said in May.
Intel's fine topped the previous record 899 million euros Microsoft was ordered to pay last year for failing to cooperate with the Commission in its anti-trust battles with the US software giant.
Mr Todd, the Commission spokesman, stressed that the EU was keeping a close watch on Intel following the fine to ensure that it wasn't continuing with its old practices. -- AFP
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