Intel Faces Antitrust Charges in Europe

[M0nkeyb0Y]

The European Commission issued formal charges against Intel on Thursday for allegedly using illegal tactics against smaller rival AMD. Reported here and here...

any thoughts?

[Steve B]

could this be a case of sour grapes?
after all, look at the position AMD were in 2-3 years ago with 939, incredibly strong position. Look at them now

[Clunk]

Sounds like someone has a chip on their shoulder.

[Steve B]

Sounds like someone has a chip on their shoulder.

Computer says NO!

[M0nkeyb0Y]

Think anything will come of it?

[Clunk]

Difficult to say until the chips are down.


I'm going now, I do apologise.

[M0nkeyb0Y]

I'm recording this for prosperity Clunk, as I do all you musings - I plan to make millions from a collection of your thoughts:

These will feature somewhere in "Clunk Gold Vol. 17"

[Saracen]

could this be a case of sour grapes?
after all, look at the position AMD were in 2-3 years ago with 939, incredibly strong position. Look at them now

It could be sour grapes, but big, dominant businesses aren't exactly renowned for paying nice. The question is where strategy crosses into illegality.

Also, it's not really about whether AMD has more or less market position now rather than then, but whether Intel has been abusing it's position and whether AMD might have been a lot stronger, now or then, if they hadn't?

If Intel have the dominant position because they're bigger, spend more on marketing, have the better product, can run on lower margins, or because they were there first and are the established market leader with others playing catchup, then fair enough. But if they've been using anti-competitive (and therefore illegal) methods, then it could be very serious for them because the panalties than International competition bodies can impose are VERY substantial .... and are a percentage of worldwide turnover. 10% IIRC. As Intel turn over something of the order of $35 billion, that suggests a potential $3.5 billion dollar fine. That's getting on for 50% of annual net profit.

I'd say this action certainly has the capability of getting Intel's attention.

But I'd also say it has potential beyond it's implications for Intel. Competition authorities both in the EU and the US are flexing their muscles and sharpening their teeth. The airline industry (especially BA and even Virgin) are facing similar actions over anti-competitive practices (i.e. price-fixing allegations), and last month, the EU took Apple on over it's iTunes operation and again, that could cost Apple 10% of worldwide turnover.

If these competitive agencies are finally growing a pair of cojones, and IF they succeed in any of these actions, then it should have the effect of firing a very clear warning shot across the bows of all sorts of industries that however big they are, they aren't immune to being taken down a peg or two if they don't obey the laws. I suppose I'm saying that these actions aren't just about individual companies, but there's a much larger political point being made from the fact that they're happening at all. And, certainly in the States, as soon as anti-competitive actions are alleged, the lawyers start circling round like vultures .... or sharks. They sense blood in the water. If a company has been acting anti-competitively, then someone, somewhere, has been losing out. If it's been consumers, then a class-action lawsuit is likely to follow and the financial implications of that are significant, too.

Anyone remember the Freddie Laker lawsuit? Major airlines (PanAm, TWA, Lufthansa and BA, for example) used anti-competitive practices to put him out of business and ended up getting sued. I travelled to the US and back three times on the compensation voucher I got from that class action suit. And it's no coinxcidence that Branson named one of his planes The Spirit of Sir Freddie.


So ... "sour grapes"? Maybe. But the issue is whether they had reason to be sour or not. If they did, I wish them and the EU luck, because if, repeat IF Intel have been playing dirty, ultimately it's likely to be you, me and the resat of us buying computers that have been getting ripped off. Maybe I'll end up with a free Core Quad out of it this time?

[Saracen]

Think anything will come of it?

Absolutely and indubitably, yes. Some lawyers will get rich.


Edit ..... sorry, I meant richer.

[alsenior]

Intel have been greasing the palms of suppliers for years. at one time Intel would pay half of your advertising cost if you used only Intel processors

[Andy3536]

This will be a tough one and i'll guess we'll not know many of the details untill the case is over.
There is a fine line clever marketing and good business practice to being dodgy.
In this market, there will always be marketing in a way that creates a negative picture of your compertition, we've seen it in a similar market with sony and MS in the console wars.
Think we'll just have to wait and see on this one, and see what transpires in the court case.

[Gunwitch]

Sounds like someone has a chip on their shoulder.

Cracked me up

Every single large company that has got anywher ein the world will use whatever tactics they feel like using. Yes they may be sued, yes they might get a slapped wrist and yes they'll get a wee iddy biddy fine that they'll pay.

And they'll carry on. Just like Microsoft and all the tactics they've used over the years to get to the number one OS slot.

AMD are a good company and have produced some cracking gear over the years so this is bound to happen.