Thursday, July 5th 2012

Intel Appeals Against $1.3 Billion Fine by EU, from 2009

Around three years after the European Commission slapped Intel with a record €1.06 billion fine for anti-competitive practices against market rival AMD, the company appealed against the fine, on grounds that the commission relied on "profoundly inadequate" evidence to establish anti-competition charges against the company, which lead to the fine. A 5-member bench of General Court in Luxembourg, Europe's second highest, will hear arguments of both Intel and EU's regulators, during a 4-day hearing. Intel wants its conviction quashed and its fine reduced/removed. According to European regulators, major computer manufacturers such as HP, Dell, and Lenovo, received unfair rebates from Intel for opting for its chips. The case is T-286/09, Intel vs Commission.

Source: Reuters
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32 Comments on Intel Appeals Against $1.3 Billion Fine by EU, from 2009

#1
reverze
sorry intel we already spent it on welfare :)
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#2
Rowsol
So.. intel gave rebates to people for buying their chips? I'm not seeing the problem here.
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#3
repman244
by: Rowsol
So.. intel gave rebates to people for buying their chips? I'm not seeing the problem here.
It's not "people", read the article again.
major computer manufacturers such as HP, Dell, and Lenovo, received unfair rebates from Intel for opting for its chips.
anti-competitive practices against market rival AMD
Posted on Reply
#4
zAAm
The problem was that supposedly Intel gave rebates to manufacturers if they ONLY use Intel chips. Now this could be done directly, saying "We'll give you discount if you don't use any other manufacturer's chips" - which would be uncompetitive, or indirectly through volume rebates, "We'll give you discount if you buy 100k chips over the next 5 years" - which would be fine.

There's way too little evidence here to make a judgement.
Posted on Reply
#5
Xyvik
by: zAAm
The problem was that supposedly Intel gave rebates to manufacturers if they ONLY use Intel chips. Now this could be done directly, saying "We'll give you discount if you don't use any other manufacturer's chips" - which would be uncompetitive, or indirectly through volume rebates, "We'll give you discount if you buy 100k chips over the next 5 years" - which would be fine.

There's way too little evidence here to make a judgement.
I seem to recall that at the time the court thought there was more than enough evidence to show that Intel performed the first part. It was pretty much ironclad fact.

I wonder why they think they can get it overruled? Did they hire better lawyers?
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#6
Apollo565
Where I come from, if you don't pay your fines within 30 days it doubles...I don't know how these big firms get away with it.
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#7
zAAm
by: Xyvik
I seem to recall that at the time the court thought there was more than enough evidence to show that Intel performed the first part. It was pretty much ironclad fact.

I wonder why they think they can get it overruled? Did they hire better lawyers?
I would think Intel already has some of the best lawyers, maybe they just hired more? ;)

Or maybe they offered their manufacturer partners further rebates if they testified in Intel's favour? :rolleyes:
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#8
riffraffy
Intel should pay the money and just charge every EU member state triple for Intel products.We across the pond shouldn't have to pay to bail out Greece,Spain,Italy it sounds like extortion to me especially went the EU was started to counter the U.S. in the 1st place.HP, Dell,... are not "People" oh no sky-net is here!!!
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#9
TheMailMan78
Banstick Dummy
Their is no anti-trust infringement. The EU is just broke from all its entitlement programs keeping the sheep in place. They will keep doing this until all their eggs are broke. The US will follow suit soon.
Posted on Reply
#10
Frick
Fishfaced Nincompoop
by: TheMailMan78
Their is no anti-trust infringement. The EU is just broke from all its entitlement programs keeping the sheep in place. They will keep doing this until all their eggs are broke. The US will follow suit soon.
Isn't this the case that originated in the early 2000's? If so, they did do some shady stuff back then. Also you're wrong. :p
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#11
repman244
by: riffraffy
Intel should pay the money and just charge every EU member state triple for Intel products.We across the pond shouldn't have to pay to bail out Greece,Spain,Italy it sounds like extortion to me especially went the EU was started to counter the U.S. in the 1st place.HP, Dell,... are not "People" oh no sky-net is here!!!
Did you even read the whole thing? I'll quote a part from the linked article:
Intel's trouble in Europe began in 2000, when AMD complained that Intel was blocking its access to the European market.
There was no financial crisis back then, and don't forget where it all started as well.

Also a bit off topic, but I assume you saw the UK court ruling for the Apples lawsuit over HTC? Apple got burned for their patent trolling big time here, and it's clear to me that the EU courts are doing a much better job than the rest of the world.

/rant :laugh:
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#12
badtaylorx
by: Apollo565
Where I come from, if you don't pay your fines within 30 days it doubles...I don't know how these big firms get away with it.
legal appeals process will grant you time
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#13
riffraffy
There was EU financial crises in 2009.But I don't think the two are connected just saying.
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#14
tacosRcool
This may be the case why not many AMD chips have been in computers at retail, since I work there. Now where I work most of our desktops are AMD Trinity ones which have excellent prices btw.
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#15
n-ster
I think intel should pay, but it's hard to prove this kind of stuff, as a lot of the times, the evidence is just hearsay etc. Smart move by intel to appeal

plus they get to make interest of the 1+ billion $ year after year lol
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#16
marsey99
cant believe they are still dodging this fine the wankers, not that it helps amd today.
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#17
Aquinus
Resident Wat-man
by: marsey99
cant believe they are still dodging this fine the wankers, not that it helps amd today.
Intel, being such a large corporation, has a lot of money to entice companies to solely use their processors by law. A smaller (yes AMD is considerably smaller than Intel,) cannot compete with that and it's just Intel's way of cornering the market without become a monopoly. I can't say I agree with it or condone it.
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#18
evulmunk33
BitFenix Rep
intel press release from 2009:
http://www.intel.com/pressroom/archive/releases/2009/20091112corp_a.htm
Under terms of the agreement, AMD and Intel obtain patent rights from a new 5-year cross license agreement, Intel and AMD will give up any claims of breach from the previous license agreement, and Intel will pay AMD $1.25 billion. Intel has also agreed to abide by a set of business practice provisions. As a result, AMD will drop all pending litigation including the case in U.S. District Court in Delaware and two cases pending in Japan. AMD will also withdraw all of its regulatory complaints worldwide. The agreement will be made public in filings with the Securities and Exchange Commission.
so now that amd has withdrawn all its complains and investigations have been stopped, because intel was about to be found guilty by courts, intel wants their money back?
so basically intel tried to silence AMD by paying them off, but the EU court decided to fine intel anyways, even after AMD dropped their complaints?
or does intel want their money back now that AMD has dropped their complaints and Intel isnt scared of being found guilty in court anymore?

either way it makes intel look like a bunch of crooks to me...
Posted on Reply
#19
theoneandonlymrk
Intel are wrong to try this, clearly want Moar monnies, greedy gets.


3 am here and just got back to manchester from london, drove now:pimp::pimp::pimp: no 3,, worng tut:o
Posted on Reply
#20
Kreij
Senior Monkey Moderator
by: theoneandonlymrk
Intel are wrong to try this, clearly want Moar monnies, greedy gets.
So Intel settled with AMD.
AMD dropped all worldwide litigation against Intel.
The EU commission still wants to fine them a billion dollars or so even though the plaintiff has dropped all charges.

Who wants Moar Monnies?
Posted on Reply
#21
theoneandonlymrk
by: Kreij
Who wants Moar Monnies?
Well obv both i agree, but the point is 1.23Billion was signed as part of the deal to quash the cases in the initial deal 3 years ago, but that case alone and not the dropped cases are what the payout was for, ie the payout plus fair trade agreement future, and all claims dropped, that seemed fair enough to me at the time, given they did agree ,, they should pay up, or theyve broke the agreement and Amd can reclaim id imagine:confused:< not high up on law.

by: Kreij
The EU commission still wants to fine them a billion dollars or so even though the plaintiff has dropped all charges.
ah,, i see why they are upto this now sos skip read or something

and a 3rd party clearly pisses on the party, the eu commision have nothing to do with Amd though so intel should be made to challenge that with Its law team alone and payup, by the courts, though id agree just to Amd and not the EU, greedy gets:).
Posted on Reply
#22
Andy77
by: riffraffy
Intel should pay the money and just charge every EU member state triple for Intel products.
They already are... and unless they want AMD to have a bigger market share, they won't.



by: riffraffy
We across the pond shouldn't have to pay to bail out Greece,Spain,Italy
Pfff, are you serious? $1 bln is a piss drop in a storm... for Greece alone the EU states have coughed up over $250 bln and it's till not enough.


by: Kreij
So Intel settled with AMD.
AMD dropped all worldwide litigation against Intel.
The EU commission still wants to fine them a billion dollars or so even though the plaintiff has dropped all charges.

Who wants Moar Monnies?
You usually get mud in your eyes where you're from? /s

It doesn't mater that AMD dropped the lawsuit, it's not AMD that started the inquiry into intel's business practices, it's the EU itself. It's called self-mandated and that's what a state's anti-corruption body, in this case the EC, does when it hears about issues between two parties non-related to said government or the EU. Lawbreaking is still lawbreaking and intel should pay per European law. Whatever ideas you have about US law... you can flush that down the toilet. It doesn't apply here.
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#23
Prima.Vera
They should pay 10bills fine. Only by having a healthy competition, the end user can afford better prices, right?
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#24
D007
If I'm not getting any money, I don't care.. The government will just take it and blow it and put us into more debt anyway..
Posted on Reply
#25
Kreij
Senior Monkey Moderator
by: Andy77
You usually get mud in your eyes where you're from? /s
Dust actually. It hasn't rained here in weeks. :D
It doesn't mater that AMD dropped the lawsuit, it's not AMD that started the inquiry into intel's business practices, it's the EU itself. It's called self-mandated and that's what a state's anti-corruption body, in this case the EC, does when it hears about issues between two parties non-related to said government or the EU. Lawbreaking is still lawbreaking and intel should pay per European law. Whatever ideas you have about US law... you can flush that down the toilet. It doesn't apply here.
I fully agree that the EU should be able to mandate it's own laws and that it has nothing to do with US jurisdiction.
I also agree that if Intel wants to do business in the EU that they have to follow the laws set forth, and that if they are found guilty should have to pay the fines.

I just think that Intel should fight it to the death because I like the drama.
Posted on Reply
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