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AMD Responds to Intel Fine; Likes it a Lot

By - Source: Tom's Hardware US | B 54 comments

Yesterday Intel was the target if the biggest ever fine handed down by the European Union and AMD couldn’t be happier.

The European Commission yesterday imposed a fine of $1.45 billion on Intel as punishment for what it felt was anticompetitive behavior designed to push rival AMD out of the market. While Intel’s Paul Otellini has said the company will be appealing the fine AMD fully supports the decision, of course, and maintains that Intel’s pricing practices broke the law.

"After an exhaustive investigation, the EU came to one conclusion--Intel broke the law and consumers were hurt," Tom McCoy, AMD's executive vice president for legal affairs, said in a statement. "With this ruling, the industry will benefit from an end to Intel's monopoly-inflated pricing and European consumers will enjoy greater choice, value and innovation."

In an official statement, AMD's president and CEO, Dirk Meyer labeled the ruling an important step toward restoring the market's competitive conditions:

"Today's ruling is an important step toward establishing a truly competitive market," said Meyers. "AMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers," he finished.

Intel maintains that it acted well within legal boundaries by offering rebates to manufacturers who agreed to obtain the majority of their processors from Intel as well as paying manufacturers to either delay or cancel the launch of AMD-based products.

This week, speculation has been mounting as to whether or not Intel will face the same level of scrutiny at home following statements from Christine Varney, the DOJ's top antitrust official. In a speech to the Center for American Progress, Varney said the Department of Justice will be "aggressively pursuing cases where monopolists try to use their dominance in the marketplace to stifle competition and harm consumers.”

[UPDATED] Edited to include comments form AMD's Dirk Meyer.

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  • 33 Hide
    icepick314 , May 14, 2009 3:12 PM
    giving discount to manufacturers should be allowed but payoffs for delaying or canceling AMD products is downright dirty...

    i'm not a fan of AMD products, Intel/Nvidia user myself, but Intel SHOULD pay the fine for what they did to European market...
  • 10 Hide
    1raflo , May 14, 2009 3:11 PM
    wouldn't be hypocrite if amd just had said "we DONT support in any way that decision"?

    of course they're happy :) 
Other Comments
  • 10 Hide
    1raflo , May 14, 2009 3:11 PM
    wouldn't be hypocrite if amd just had said "we DONT support in any way that decision"?

    of course they're happy :) 
  • 33 Hide
    icepick314 , May 14, 2009 3:12 PM
    giving discount to manufacturers should be allowed but payoffs for delaying or canceling AMD products is downright dirty...

    i'm not a fan of AMD products, Intel/Nvidia user myself, but Intel SHOULD pay the fine for what they did to European market...
  • 3 Hide
    IzzyCraft , May 14, 2009 3:13 PM
    Why wouldn't they be anytime your competition takes a blow is a good time for you.
  • 5 Hide
    cryogenic , May 14, 2009 3:18 PM
    IzzyCraftWhy wouldn't they be anytime your competition is brought to justice for taking anti competitive actions, is a good time for you.


    Fixed.

  • 2 Hide
    tipoo , May 14, 2009 3:21 PM
    This would only benefit AMD if Intel was forced to pay a royalty for every processor sold through their "rebates".
  • 8 Hide
    cyberkuberiah , May 14, 2009 3:22 PM
    we wish for good am3 processors for the future , 800 series chipsets and the next gen of radeon cards . with ddr3 premium falling steadily , should give a solid offering hopefully at good value too .
  • 6 Hide
    spongebob , May 14, 2009 3:23 PM
    "AMD Responds to Intel Fine; Likes it a Lot"

    Thanks for taking the time to write this article and point out the obvious.

  • 5 Hide
    PC_GI , May 14, 2009 3:29 PM
    Intel's procs are way way way too expensive. I use only Intel but I wish they had prices like AMD. And I'm sure most Intel users feel the same way. Maybe this SMALL chunk of money will help them start making the right decisions and hold the consumer in their better interests. But that's not at all whats really going to happen. Greed greed greed.
  • 4 Hide
    apmyhr , May 14, 2009 3:32 PM
    Wow, I was so sure that AMD would be upset with the rulling. Thank you Tomshardware for clearing that up for me.
  • 9 Hide
    humand , May 14, 2009 3:35 PM
    while "offering rebates to manufacturers who agreed to obtain the majority of their processors from Intel" might be debatable of weather is right or wrong, "paying manufacturers to either delay or cancel the launch of AMD-based products" is plain wrong and they should pay dearly for it.
  • 2 Hide
    rooseveltdon , May 14, 2009 3:50 PM
    I am really disappointed with the way intel tried to keep AMD out of the game,offering rebates in one thing,but paying OEM's to keep or delay AMD products is very "mafia" like and affects the consumers the most,i think intel owes every consumer an apology especially those who actually buy their overpriced products despite intel's stupid pricing.
  • -1 Hide
    justjc , May 14, 2009 3:57 PM
    To sad AMD states nothing about how they will use this ruling in their various fights with Intel.
  • 8 Hide
    Anonymous , May 14, 2009 4:04 PM
    The companies that took the payoffs and rebates are just as much at fault and should be held accountable as well.
  • 0 Hide
    mdillenbeck , May 14, 2009 4:06 PM
    tipooThis would only benefit AMD if Intel was forced to pay a royalty for every processor sold through their "rebates".

    The decision for Intel to appeal or pay the fine will cost them a decent chunk of change. This hurts profitability, and thus both shareholder returns and their credit (in a time where every company needs to hold onto every bit they can).

    Also, I believe the cost to Intel's reputation would be great (hence the appeal). After all, outselling the competition and having superior products sounds great - but doing so because you had to pay your customers to not use or delay use of your competitor's product sounds like you knew they had a decent product.

    True, it might be nice for AMD to see an infusion of cash for this, but how do you prove the potential lost income for a market that your company wasn't allowed to participate in?

    Myself, if I were AMD, I'd just go after perpetual rights to the x86 architecture for whomever fabricates their chips. No direct cost to Intel, only a cost of future income. :) 
  • 0 Hide
    vexing , May 14, 2009 4:24 PM
    spongebob"AMD Responds to Intel Fine; Likes it a Lot"Thanks for taking the time to write this article and point out the obvious.


    Haha.
  • 0 Hide
    falconqc , May 14, 2009 4:24 PM
    Unless end users see any benefit from this, then this ruling has no meaning whatsoever. Oh sure Intel loses a little reputation and a little bit of money, and the EU feels like they did something right.

    The truth is, we as customers will probably not see any benefits from this at all.
  • 0 Hide
    grando , May 14, 2009 4:46 PM
    Ahh..duhhh..that's a no brainer
  • 5 Hide
    JMcEntegart , May 14, 2009 4:48 PM
    Hey we wanted to post an article with AMD's response, in the interest of telling the complete story. That said, I realised it was a pretty obvious response from AMD, so I figured this title reflected that. Would you rather we posted no follow up comment from AMD at all?
  • 1 Hide
    hillarymakesmecry , May 14, 2009 5:00 PM
    I just bought an AMD laptop, mostly because it was cheap, but partially because I wanted to support an abused underdog. Stop overcharging Intel!
  • -8 Hide
    anamaniac , May 14, 2009 5:02 PM
    We as consumers may be the ones harmed in this...

    That's $1.45 billion less to go into research and development.
    With less R&D, me may as well go back to 10MHz CPUs. :) 
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