EU Fines Intel $1.44 Billion in Antitrust Case

From PC World: The European Commission Wednesday found Intel guilty of antitrust violations in the market for PC microprocessors and fined it $1.44 billion.

Competition Commissioner Neelie Kroes said that the antitrust action is primarily designed to protect consumers. "Intel has harmed millions of EU consumers," she said, adding that the large fine meted out should "therefore come as no surprise".

The main antitrust abuses involved paying rebates to system manufacturers and to Europe's largest IT retailer, Media Markt, in order to shut out Intel's closest rival, AMD. Although the rebates resulted in a reduction in retail prices, Kroes said that the harm to consumers stems from their not getting the choice of computers that they would have if AMD wasn't suppressed.

The Commission will monitor Intel's compliance with the ruling. Unlike in the Microsoft case, where it appointed a monitoring trustee, the Commission will do the job itself, said officials in the antitrust group.

Intel plans to appeal the ruling and takes "strong exception" to the Commission's decision, Intel President and CEO Paul Otellini said in a statement, saying the decision is "wrong and ignores the reality of a highly competitive microprocessor market."

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