Wednesday, May 13th 2009

Statement by Intel President and CEO Paul Otellini on EC Ruling

Paul Otellini, Intel Corporation president and CEO today issued the following statement regarding the European Commission decision on Intel's business practices:

"Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal."

"We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don't perform the market acts accordingly."

"Intel never sells products below cost. We have however, consistently invested in innovation, in manufacturing and in developing leadership technology. The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world's leading volume manufacturer of microprocessors."

"Despite our strongly held views, as we go through the appeals process we plan to work with the Commission to ensure we're in compliance with their decision. Finally, there should be no doubt whatsoever that Intel will continue to invest in the products and technologies that provide Europe and the rest of the world the industry's best performing processors at lower prices."

Intel's Position on the AMD Antitrust Case
Since the 1990s Intel's principal competitor has been on a concerted campaign to get regulators and courts around the world to prevent Intel from competing aggressively in the market. The aggressive marketing campaign by Advanced Micro Devices (AMD) has included numerous complaints to regulators in multiple jurisdictions which all stem from the same set of allegations and source. It has included a private lawsuit in the U.S. and two in Japan. By all accounts the U.S. lawsuit could become one of largest antitrust cases in the history of U.S. Courts.

AMD's objectives are clear; it is seeking price protection and wants to become more successful by deterring Intel from aggressive competition. Stripped of hyperbole AMD's complaints around the world accuse Intel of competing too aggressively by offering customers attractive prices and marketing, and technical support to win their business.

The microprocessor market is fiercely competitive. That competition has resulted in tremendous benefits to consumers worldwide by providing continuous improvement in technology innovation, performance and capability at consistently lower prices. Intel believes in competition and has never shied away from it. As you will see from information contained on this site Intel believes it operates well within the law.

More information about Intel and "Competition in the Innovation Economy" is available here.Source: Intel
Add your own comment

128 Comments on Statement by Intel President and CEO Paul Otellini on EC Ruling

Most are dickering around here as if this were a sandbox and Jimmy was playing mean with Johnny.

This is business, and companies manipulate situations every day to gain better foothold and a better position. This suit initiated by AMD is just to shove Intel around a bit, and to stop the bribes and threats. How much has AMD sunk in legal costs they can't recover? How much has Intel been drug through the mud in the eyes of the general populace?

Really all AMD is looking for here is the same business punch as Intel pulled don them, and they won. But instead of it being short lived, this is going to haunt Intel for awhile, they will have their business scrutinized and looked at under a microscope. If nothing else, it will make them keep their nose clean for awhile and get back to the business of making better processors.

Anyone looked at AMD's website today? I wonder if they will be running ad's?
Posted on Reply
Frederik S
Yet another ridiculous ruling by the EC. Anyhow when I worked at a large PC manufacturer the problem with AMD was always availability, somehow Intel actually manages to produce almost enough chips at launch to meet demands. AMD is just trying to combat Intel's growth, and this is just one way to go about it.
Posted on Reply
Big Member
WhiteLotus said:
Why did i never state that. Gay. stupid me:shadedshu
Was that sarcasm?
Posted on Reply