
AMD and Intel are at it again but this time it’s not on the chip market it’s in court. The ruling of which was surprising and in AMD’s favor. The European Commission decided that Intel had taken part in illegal actions to hurt its rival’s sales. The result was the largest fine in regards to antitrust laws. The fine for breaking these laws was a whopping 1.45 billion dollars.
The case came because Intel was accused, and found guilty, two separate crimes. The first crime was that Intel gave manufacturers special rebates for buying the majority if not all of the x86 type processors from Intel. There were allegations that Intel also made payments to retailers so that they would only stock the Intel version of the x86 chips.
The second crime that the European Commission found Intel guilty of was paying manufacturers to delay the release of competitor’s computers containing the other x86 chips or delay releasing the chips themselves. This occurred from October of ‘02 until December of ‘07!
You may ask yourself how this is harmful to the market. Well besides being a highly unethical practice, the smaller chip makers such as AMD are unable to compete with Intel as their computers are not being sold in the same stores and the manufacturers are being paid to put the Intel chips in rather than a mix of chips.
There were some computer manufacturers that were named as accepting payments from Intel to follow these practices. The larger manufacturers were Acer, Dell, and Hewlett-Packard. There were some less known companies as well that were also named.
In one instance the rebates caused AMD to not even be able to give their CPUs away. The manufacturer (who was unnamed) only took 160,000 x86 chips from AMD because they would have lost their rebate from Intel if they had taken more. Hopefully Intel will learn a lesson from this and not hurt the consumers further.
Source: CNET
