Intel: EC failed to meet 'standard of proof' for $1.45 billion fine

Intel: EC failed to meet 'standard of proof' for $1.45 billion fine

Summary: Intel said Europe's top antitrust regulator failed "to meet the required standard of proof" when it fined the chip maker $1.45 billion for anti-competitive behavior against AMD. The news comes as Apple named Intel's top lawyer Bruce Sewell as its general counsel.

SHARE:

Intel said Europe's top antitrust regulator failed "to meet the required standard of proof" when it fined the chip maker $1.45 billion for anti-competitive behavior against AMD. The news comes as Apple named Intel's top lawyer Bruce Sewell as its general counsel.

Intel noted that it would appeal and the company recently laid out its case against the European Commission (EC). In a nutshell, Intel argues that the EC:

  • Failed to address evidence that AMD was increasing market share during the period in question;
  • Failed to establish a causal link between Intel's discounts and customer decisions not to use AMD;
  • Failed to analyze how those discounts impacted consumers at all;
  • And failed to stick to legal procedures as it decided to fine Intel.

Also see: EU ombudsman slaps antitrust regulators over Intel case

The stakes are high as AMD cited the EC fine as a big win. A key passage from the appeal:

The Commission fails to prove that Intel’s rebate arrangements were conditional upon its customers purchasing all or almost all of their x86 CPU requirements from Intel. In addition, the Commission uses an ‘as efficient competitor’ (‘AEC’) test to determine whether Intel’s rebates were capable of restricting competition but it commits numerous errors in the analysis and assessment of the evidence relating to the application of that test. The Commission also fails to address other categories of evidence relevant to the effects of Intel’s discounts.

The company is asking that the EC decision be nixed completely, "annul or reduce substantially the level of the fine imposed" and pay Intel's legal costs.

Topics: Processors, Enterprise Software, Intel, Security

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

14 comments
Log in or register to join the discussion
  • yeah, right...

    M$ sang the same tune and lost.
    Linux Geek
    • It's people like you that kill free markets!

      I hope you enjoy your free Linux software and no food!
      MSFTWorshipper
  • RE: Intel: EC failed to meet 'standard of proof' for $1.6 billion fine

    LOL! Intel is basically telling the EC to suck it! More American companies need to start doing this and show that the EC will not and cannot walk all over us! Its time the bribes ended.
    Loverock Davidson
    • We need to strike back at EC's blantant extortion

      Some retaliation tariffs should be on the table. You gotta show them you are up to whatever dirty little games they want to play.
      LBiege
      • How?

        With what?

        The EU is a self sufficient economy, most of
        their manufacturing industry is still intact,
        which means that they can create a lot of the
        products we can.
        They produce their own food, most of our
        food is banned in the EU due to the excessive
        use of food additives and Genetically Modified
        plants.

        Simply put there is nothing we can do, but they
        can do a lot more to us, they are a major
        trading partner, if they freeze us out we will
        take longer to recover.
        JAMD456
  • How's about a title that matches the story?

    Like, "Intel appeals EC fine"

    The way you have it written, it implies that Intel has already won their appeal, when the appeal hasn't even taken place.
    zkiwi
    • That would not generate as many clicks/reads.

      While what you wrote is technically correct, it does not generate enough silly responses (and thus revenues fro the blogger) as the implication that they are in a legal process where they are appealing to the court to get the fine lowered or thrown out. Most people who repsond to the blogs do not understand the legal process in Europe, much less in the United States or any other country (perhaps they are Yanks).
      B.O.F.H.
  • So if the EC loses, do they pay the court fees

    nah, who'd allow their own rulings to be overturned and thrown-out. What's Intel gonna do, go to the UN court. LOL
    Boot_Agnostic
  • All four points are dead on...

    Sorry but Intel is right with these points. THe FACT is, AMD was gaining market share until they could not keep up with advances. But then, a loser always needs to blame someone or something else.
    No_Ax_to_Grind
    • Incorrect..

      AMD should hae gained even more market share and funds to support those continuing activities.

      Intel's underhanded tactics deprived AMD of that additional revenue stream when it clearly had the technology advantage.

      thetruth_z
      • What? Intel is not supposed to use their leverage?

        Why have billions to throw around if you can't use them?
        MSFTWorshipper
  • RE: Intel: EC failed to meet 'standard of proof' for $1.6 billion fine

    But the specifics of this case are clear,

    Intel used to underhanded means to make gains over AMD,

    They payed off suppliers to delay the shipments of goods,
    Offered rebates to companies which caused them to forsake the then
    superior AMD Athlon processor.

    I believe in an open economy and I have no problem with big
    companies, but I do see the dangers of large companies acting above
    the law.

    But when larger companies use their wealth to fix the competition in
    their favor I believe that this form of action is necessary.

    Our own Government used to work like the EU at one point,
    we actually would have investigated abuses like this, but now if you
    throw a few hundred thousand dollars at the Politicians and those
    involved with these cases, the whole thing is forgotten.

    JAMD456
  • Ignore this

    This was posted in the wrong place
    JAMD456
  • RE: Intel: EC failed to meet 'standard of proof' for $1.6 billion fine

    zpuoxy,good post!
    makrejktt4301-24353680030957331660113481566189