After EU fine, Intel will face rash of lawsuits

After EU fine, Intel will face rash of lawsuits

Summary: Look for lawsuits filed in Europe from AMD and others now that the EU has found Intel was very, very bad.

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Intel's $1.44 billion fine imposed by the EU is probably just the beginning of Intel's European problems. Look for AMD to deliver a civil lawsuit now that the EU decision is in, PC World says. The article quotes British antitrust lawyer Alan Davis, PC World says:

This will open the floodgates for competitors to sue. There was a complainant in this case, AMD, and without question they and other competitors will pursue a case for damages. The fine goes to the European Commission's coffers, not to the competitors who suffered damage to their businesses because of Intel's anti-competitive practices. What is likely to happen is that action will be started and a massive settlement will be made.

And it won't be just AMD and other chipmakers. The OEMs themselves were injured by Intel. Even if they got cheaper prices in the short run, by locking out AMD they lost the benefits of a competitive marketplace. Now AMD is no longer a serious player and Intel can name its price. So, why shouldn't IBM, Dell and HP sue, as well?

And don't forget class actions on behalf of consumers.

As to the details of what the suit would look like, one needs only peruse the lawsuit AMD filed against Intel in 2005.

Topics: Processors, Government, Government UK, Intel, Legal

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16 comments
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  • At first...

    At first, I thumbed my nose at the EU and their
    "intrusion" into the US business place with
    their anti-trust this and anti-competitive
    that.. I am beginning to think they are the
    only ones with enough backbone to stand up to
    the MS's and Intel's and not bow to the lobby
    dollars and backroom deals.

    Our justice by the dollar and legislation by
    donation system here in the US needs a swift
    kick in the ****.
    supercharlie
  • RE: After EU fine, Intel will face rash of lawsuits

    What Intel should do is stop selling to European Union Nation/States. Have them forced to indirectly import from non-EU nations (limiting supply, increasing the middle man fee, and they can't be sued for anti-competitiveness.) After AMD starts getting comfortable and start jacking up their prices, the EU will literally beg for them to start directly selling inside the EU. Their is no by-law that says Intel has to operate inside the EU and if they are going to be continually sued for doing so, why would they?

    Besides, consumers have a choice. Any smart consumer contrast and compare various product lines and find the best deal. If a consumer buys from one company just because of name recognition, they are wasting their money.
    booser108
    • You completely miss the point.

      The purpose of the EU action was not to drive Intel from the marktet, but to restore a competitive market after Intel's abuses.

      Plenty of EU residents want access to Intel's products, but not at the price of a non-competitive market. Why is that so hard to understand?

      Incidently, the EU forms 30% of Intels market, so Intel would be cutting off their nose to spite their face by withdrawing from the market. Despite the fine, they have still made $bns here.

      Finally, and if you bothered to review some facts you would already know this: Customers choice was actively restricted by Intel, who paid rebates to OEMs conditional on them not carrying AMD products. The vast majority of people dont directly purchase CPUs, but rather complete systems.

      TheTruthisOutThere@...
      • You completely missed his point

        His point being that Intel should let them know who is in charge. Don't know if I agree with his point since AMD does make a decent, though perhaps lesser, product. You'd think MS would have more luck with that strategy, yet they never contemplated it. But still I would wager Europe would suffer more than Intel, and that Intel's biggest reason not to carry through with a EU boycott would be that they would just as soon not have to deal with the short term consequences for the sake of revenge or a power grab.
        Michael Kelly
      • You are Wrong

        If the purpose of the law suit was to protect the consumer, then the fine should go to the consumers. It won't.

        This suit was to punish Intel, since Intel would not run their to suit the EU.

        30% of profits don't mean squat if you get sued every year or two because you choose to run your company rather than turn it over to some slimy beauracrats. I would pull out and leave them high and dry.

        The fact is, AMD brought this case to the EU Jackboot counsel, because no one else would hear it. Intel did not do anything that other companies are not doing, including AMD. And as you said the consumer could give a rats..., they buy computers not cpus.

        eargasm
    • 1/3 of Intel revenue comes from EU

      I'm so glad your a wise and clever businessman, did you used to work for Lehman Brothers ?
      Alan Smithie
    • RE: After EU fine, Intel will face rash of lawsuits

      Booser108.. There's no way Intel can afford to stop selling to the EU. Purposely devaluing the company like that wouldn't go over good with the stock holders for one. Your second point shows you missed the whole point. Consumers were not given a choice. They were headed off at the manufacture. There was a time you couldn?t find or were hard pressed to find a AMD powered server preloaded with Linux. And it wasn?t from lack of market.
      To everyone else. Intel?s R&D budget is 10 times that of AMD. AMD should never have passed them. So really, they got the right to brag about it forever now even if they never do it again. I7 blows PII away. But only because of the memory controller and being 64bit, both of which it owes thanks to AMD.
      xDassinx
  • It's time to face the music

    The antitrust law is not only for M$.
    Inhell should pay too.
    Linux Geek
  • RE: After EU fine, Intel will face rash of lawsuits

    Just out of curiosity, why is only Intel being fined? Didn't the companies Intel sold to agree to this in exchange for lower prices?
    meelder
    • they might be guilty too but..

      Intel made them an offer they couldn't refuse, and we the consumers got burnt in the process
      nessrapp
  • And the Fat lady sings, her name is EU

    Fanboys always fail to realise that this case, is not a matter of who has the better quad core (intel i7) or about who has the better intergrated graphics (AMD 790gx. This case is just about who was doing illegal side deals to fix the cpu market.

    It wouldn't make sense for intel to start strong arming people now that they have some decent products, intel started to do this back when Amd cpu were kicking their as, AMD has the perfomance and energy effient crown for about a good 4 to 5 years, but yet they never even past 35 percent market share. And don't tell me the pentium 4 was a better alternative to the atlon.

    intel is doing today what it has been doing for years, bullying OEM's and cheating AMD out of the market, like they say if it's not broken don't fix it. intel knew this saying and they didn't stop, however i think after losing 3 antitrust case in a row, things might be starting to break.

    I wanted the OEM's to get fined too but you have to realise, intel might not be able to boycott the EU but it can boycott an OEM anytime it wants. So by blackmailing OEM's threatening to boycott if they sold to many AMD cpu's and at the same time offer good rebates, the OEM's became accomplices to second degree murder of AMD, free market and consumers.

    saneblane
    • And the Fat lady sings, her name is EU

      [i]intel is doing today what it has been doing for years, bullying OEM's and cheating AMD out of the market, like they say if it's not broken don't fix it. intel knew this saying and they didn't stop, however i think after losing 3 antitrust case in a row, things might be starting to break.

      I wanted the OEM's to get fined too but you have to realise, intel might not be able to boycott the EU but it can boycott an OEM anytime it wants. So by blackmailing OEM's threatening to boycott if they sold to many AMD cpu's and at the same time offer good rebates, the OEM's became accomplices to second degree murder of AMD, free market and consumers.[/i]

      Microshaft does the same thing when it comes to Linux. Prior restraint, predatory agreements, bullying of OEMs. These fat pig monopolist corporations have gotten completely out of control.

      Hopefully the Obama Administration picks up some of where the EC left off.
      Wintel BSOD
  • New Yorker cartoon

    Sometime in the last couple of years, there was a cartoon in the New Yorker: A couple of executives in an office. The caption said, "You know who's a pain in the a**? Europe's a pain in the A**!"

    The world market is a complex place, with a variety of rules.
    cynic8
  • RE: After EU fine, Intel will face rash of lawsuits

    you are the one missing the point, i completely agree with "TheTruthisOutThere"...

    Intel cannot afford to do without the EU, a whopping 30% of your market? That will be insane!

    Intel can't even afford to give AMD 30% of their market, and Intel really cheated we the customers. There was a time when AMD processors were the preferred choice in both servers and desktops..
    nessrapp
  • RE: After EU fine, Intel will face rash of lawsuits

    The suit was nothing more than a way for a socialistic country to rob and steal from an American Company.. That simply

    when they method of goverment takes more money than they can take from their people with 80%+ taxes they simply steal from others
    rparker009
  • RE: After EU fine, Intel will face rash of lawsuits

    Would McDonalds sue Burger King for unfair competition ..Answer-"No"..? Why should AMD bother now that INTEL has the market cornered with INTEL Core Duo & Quad processors can your computer live without ...?!* That is spiteful and unfair to Intel.
    cryptolabs@...