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Now US Inclines to Fine Intel for Antitrust Malpractice

btarunr

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Trailing the European Union's record 1.45 Billion Dollar penalty against silicon giant Intel for antitrust malpractice in Europe, American antitrust regulators are on the verge of filing their own set of charges against the company, emanating out of similar findings of investigations carried out by the Federal Trade Commission (FTC). Sources tell BusinessDay that three out of four commissioners on the FTC were in favor of filing a complaint against Intel. FTC's own inquiry opened in June, last year. It could be a matter of weeks, or even months before a vote formalizing FTC's stand on the issue happens.

"Our business practices are lawful and [work] to the benefit of consumers," said Intel spokesperson Chuck Mulloy, in response to the BusinessDay report. "We certainly have been working closely with the FTC as they conduct their investigation. We would hope that the speculation is incorrect ," he added. The US antitrust investigation follows similar investigations that have concluded against the favor of Intel, by the European Union, South Korea, and Japan. Japan's trade commission concluded in 2005 that Intel violated the country's anti-monopoly act. In June last year, South Korea fined Intel about $26m, finding it offered rebates to PC makers in return for not buying AMD microprocessors. EU's investigations yielded similar findings, where the company was fined 1.06 Billion EUR for paying computer makers to postpone or cancel products that use microprocessors made by smaller competitor AMD.

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btarunr

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Many Thanks to Benetanegia for sending this in.
 

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It ain't official until it is filed.
 

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if the world feels the need to punish intel for throwing its weight around then go for it, but the one thing that annoys the hell out of me is the fact that this benifits neither the "competition" nor the consumer in any way, in fact it might hurt the consumer if intel decideds to raise their prices...and they can because the still control pretty much the entire market no matter how much you fine them........so why bother really? What are these fines? like 10% of a quaters profit? that'll show um
 
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and the saga continue...
 
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Money should go to amd.
 
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I agree that it will not benefit the consumer, but they need to be punished in some way for underhand practices so they dont happen again. If this was allowed to happen without punishment, then in the long run this would hurt the consumer as the competition would go under and intel would create (as stated above) a monopoly.

Its unfair and un lawful for companys to do this.

True, this needs to be proven, but this has already been proven in europe and other contries, so i think this will be the case in the US also.
 
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Now, where's Intel going to go if it wants to "leave this market" in response? Mars?

if the world feels the need to punish intel for throwing its weight around then go for it, but the one thing that annoys the hell out of me is the fact that this benifits neither the "competition" nor the consumer in any way, in fact it might hurt the consumer if intel decideds to raise their prices...and they can because the still control pretty much the entire market no matter how much you fine them........so why bother really? What are these fines? like 10% of a quaters profit? that'll show um

If Intel raises their prices, companies might go to AMD. Therefore: Intel won't raise its prices.

Additionally, the consumer will be given extra choice now that hopefully Intel's "exclusive deals" will stop.

Also, 10% of a quarter's profit is a LOT of money.
 

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I agree that it will not benefit the consumer, but they need to be punished in some way for underhand practices so they dont happen again. If this was allowed to happen without punishment, then in the long run this would hurt the consumer as the competition would go under and intel would create (as stated above) a monopoly.

Its unfair and un lawful for companys to do this.

True, this needs to be proven, but this has already been proven in europe and other contries, so i think this will be the case in the US also.

aye
 

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Not sure if its needed but I am about tired of hearing about it. If the money went to AMD, good, but really leave them alone.
 
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If AMD isnt getting the money this is an exercise in futility
 
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Time to pay...
 
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Not sure if its needed but I am about tired of hearing about it. If the money went to AMD, good, but really leave them alone.

There has never been a chance of the money "going to AMD" -- frankly, I wouldn't care even if there was a fine, as long as a little more regulation took place afterwards in the market.
 
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Being the US i wouldn't be surprised if they imposed an even bigger fine.
 

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Not even victims that have been robbed get the money/stolen items back 99% of the times, unless the thief is caught with the loot, so what makes you think AMD would see any compensatory money?

Anyway fining them is good for the consumer always, because it prevents them and others from doing the same again and again, and promotes free market, where overall prices are always better than when a single company dictates the prices. Not only they have to pay anyway, their bussiness is going to be monitored for some time so that it doesn't happen again.

It ain't official until it is filed.

Of course Paul*, of course, but the fact that they are thinking about fining them already shows Intel has been found guilty by them. It just means they are still deliverating if it makes sense for them to spend money and time in the courts.

*Can I call you Paul or should I stick to Mr. Otellini?
 
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Here we go again.

Yay! Another payday for the govt!!!!
 

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Of course Paul*, of course, but the fact that they are thinking about fining them already shows Intel has been found guilty by them. It just means they are still deliverating if it makes sense for them to spend money and time in the courts.

*Can I call you Paul or should I stick to Mr. Otellini?

LOL
 
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Being the US i wouldn't be surprised if they imposed an even bigger fine.

How else are we going to pave, rip up to replace water main pipes, then pave again within a 2 month time span?
 
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Being the US i wouldn't be surprised if they imposed an even bigger fine.

FTC has routinely stated a fine of $2,000,000,000+ USD is applicable due to the size of the US Market and the size of the violation. Which is rather large... in excess of 9* Billion total...
 
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How do politicians floss in the US?
 

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Wasn't most of this being done during the P4 era? In which case the damage is already done, and no amount of fining is going to fix anything. Would it be good to discourage them? Yes. Might get the OEMs that accepted the deals (who are just as guilty if you ask me) shaking in their boots too. Seriously though, as far as I've heard most of the dealing only went on when AMD had the upper hand, so fining them now that AMD are severely weakened (from failing to execute on K10, purchasing ATi, etc.) would seem a little silly, despite the fact that it would be justified by the same actions which would have justified it back then.

I think it's a little pointless. The PR would do more damage than the fine...
 

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Of course Paul, of course, but the fact that they are thinking about fining them already shows Intel has been found guilty by them. It just means they are still deliverating if it makes sense for them to spend money and time in the courts.
According to only one "unnamed" source that has been repeated a dozen times. The law doesn't work on rumors and speculation. I quote myself: It ain't official until it is filed.

Need I also mention that "source" is in the UK. Last time I checked, the FTC doesn't operate outside of the USA.


FTC has routinely stated a fine of $2,000,000,000+ USD is applicable due to the size of the US Market and the size of the violation. Which is rather large... in excess of 9* Billion total...
The most the FTC ever fined was $15 million involving identity theft of 800 people. I would be surprised if the fine exceeded $100 million.
 
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