Intel could be fined massive amounts in Europe

eu flag

When we say massive, we’re looking at billions of dollars, here. The European Union has been fighting with Intel over their alleged ‘anti-competitive’ business practices for years now, and it looks like the whole battle is finally coming to a close.

The fine could be one of the largest fines ever the EU has dealt on its long history. It’s expected to be issued tomorrow at the Commissioners’ meeting, according to the Financial times. It’s not that long ago that similar anti-competitive fines were thrown at Microsoft to the hefty sum of $1.36 billion which lead to the creation of the interestingly named ‘Windows XP N’, an EU only Windows package that was identical to all the regular copies but lacked Microsoft Media player.

Intel have been accused of a number of underhand tactics towards their rival, AMD. Intel and AMD are basically the only two types of processor that any PC user really considers, and although AMD enjoyed some major success during the time of the Pentium 4 chips five years ago or more, the company has had a tough time trying to match Intel’s impressive CoreDuo range of products. Still, both names are very well known to anyone with an interest in computers and IT.

That hasn’t stopped Intel from resorting to tactics including offer rebates that only work under the condition of promises from a company to buy all of their processors from Intel and paying manufacturing companies to cancel their AMD product lines, having a major effect on AMDs ability to do business.

Intel has also been in trouble in Japan in the past for similar issues and it’s currently dealing with another court case in the US around similar issues with AMD. Perhaps tomorrow’s ruling and a maximum fine of over $4bn will make the company reconsider its tactics, but perhaps not. Time, as they say, will tell.

Posted on May 12, 2009 | Filed Under Tech