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→European Commission Anti-Competitive Lawsuit
===European Commission Anti-Competitive Lawsuit===
===European Commission Anti-Competitive Lawsuit===
In 2007, the European Commission filed an anti-competitive case against Intel. According to the EU Statement of Objection, the company violated Article 82 of the EC Treaty rules on abuse of a dominant position. EU cited that Intel conducted the following business practices:<ref>[http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/07/314& Competition: Commission confirms sending of Statement of Objections to Intel]</ref> <ref>[http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/5316447/Intel-faces-biggest-ever-EU-competition-fine.html Intel faces biggest ever EU competition fine]</ref>
In 2007, the [[European Commission]] filed an anti-competitive case against Intel. According to the EU Statement of Objection, the company violated Article 82 of the EC Treaty rules on abuse of a dominant position. EU cited that Intel conducted the following business practices:<ref>[http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/07/314& Competition: Commission confirms sending of Statement of Objections to Intel]</ref> <ref>[http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/5316447/Intel-faces-biggest-ever-EU-competition-fine.html Intel faces biggest ever EU competition fine]</ref>
* Intel offered significant amount of rebates to various Original Equipment Manufacturers (OEMs) with a condition to purchase all their CPU requirement from Intel
* Intel offered significant amount of rebates to various Original Equipment Manufacturers (OEMs) with a condition to purchase all their CPU requirement from Intel
* Paid OEM to entice them to delay or cancel the launching of product lines with an AMD-based CPU
* Paid OEM to entice them to delay or cancel the launching of product lines with an AMD-based CPU
* Intel offered CPUs on average or below cost in bidding against AMD-based products for strategic customers in the server market
* Intel offered CPUs on average or below cost in bidding against AMD-based products for strategic customers in the server market
In response to the allegations, Intel's General Counsel Bruce Sewell said that EC committed factual mistakes on its charges against Intel particularly on the company's pricing and manufacturing costs. Sewell said, "I can tell you that having read the SO there are factual assumptions which have been made which we think the Commission has simply gotten wrong -- not intentionally." <ref>[http://www.reuters.com/article/2007/07/27/idUSL2788098920070727?sp=true Intel says EU made errors in antitrust charges]</ref>
In response to the allegations, Intel's General Counsel Bruce Sewell said that the EC committed factual mistakes on its charges against Intel, particularly on the company's pricing and manufacturing costs. Sewell said, "I can tell you that having read the SO there are factual assumptions which have been made which we think the Commission has simply gotten wrong -- not intentionally."<ref>[http://www.reuters.com/article/2007/07/27/idUSL2788098920070727?sp=true Intel says EU made errors in antitrust charges]</ref>
In 2009, EC ruled that Intel committed anti-competitive business practices and ordered the company to pay $ 1.45 billion fine. According to E.U. Competition Commissioner [[Neelie Kroes]], Intel seriously violated the E.U. antitrust riles which cannot be tolerated. Furthermore she states that,
In 2009, the EC ruled that Intel committed anti-competitive business practices and ordered the company to pay a $1.45 billion fine. According to E.U. Competition Commissioner, [[Neelie Kroes]], Intel seriously violated the E.U. antitrust rules. Furthermore, she stated that, "Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years." Intel Chairman Paul Otellini said that the company will appeal the decision and the Commission failed to acknowledge the reality of a highly competitive microprocessor market.<ref>[http://www.time.com/time/business/article/0,8599,1897913,00.html The Chips Are Down: Intel's $1.45 Billion Fine]</ref>
"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years." On the other hand, Intel Chairman Paul Otellini said that the company will appeal the decision and the Commission failed to acknowledge the reality of a highly competitive microprocessor market.<ref>[http://www.time.com/time/business/article/0,8599,1897913,00.html The Chips Are Down: Intel's $1.45 Billion Fine]</ref>
==References==
==References==