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EU Airs Out Intel's Dirty Laundry

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12:31 PM - September 22, 2009 by Jane McEntegart

The European Union has laid bare the dirty details of its evidence against Intel, publishing emails and notes from Intel executives that show the company was actively trying to smother the competition.

Intel has long contested the $1.45 billion fine from the European Union's antitrust division and yesterday, the EU responded to the appeal Intel filed in July by making a "non-confidential version" of its ruling final.

So what do we know now that we didn't know before? When the EU announced its ruling before the summer, it said that Intel was guilty of anti-competitive practices but now, we're finding out just what Intel was up to and good gracious if it doesn't paint Intel in a decidedly unflattering light.

The EU release includes details of rebates with manufacturers such as Dell, Lenovo and HP. Check out the deets of some of the deals below.

Rebates paid to Dell from December 2002 to December 2005 were conditioned on Dell purchasing exclusively Intel CPUs. For example, in an internal Dell presentation of February 2003, Dell noted that should it switch any part of its CPU supplies from Intel to its competitor AMD, Intel retaliation "could be severe and prolonged with impact to all LOBs [Lines of Business]."

The deal with HP was a little different. HP was awarded rebates provided the company adhered to several unwritten requirements. First and foremost, HP was to purchase at least 95 percent of its business desktop system from Intel. Second, although HP could purchase the remaining 5 percent from AMD, this was subject to further restrictive conditions. These included only selling AMD-based business desktops to small and medium enterprises, only via direct distribution channels (rather than distributors), and on HP postponing the launch of its first AMD-based business desktop in Europe by six months.

An internal email from HP and dates September 2004 reads, "You can NOT use the commercial AMD line in the channel in any country, it must be done direct. If you do and we get caught (and we will) the Intel moneys (each month) is gone (they would terminate the deal). The risk is too high."

Similar restrictions were places on deals with Acer and Lenovo with the former postponing the launch of an AMD-based notebook from September 2003 to January 2004.

Check out the full release from the European Union by clicking here.

Source : Tom's Hardware US

Talkback
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SpadeM 09/22/2009 6:58 PM
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-20+

Let's see the "EU is leaching money of the poor and righteous American company" argument their point now.

Jerky_san 09/22/2009 7:00 PM
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Wow that is some pretty dirty laundry..

charlesxuma 09/22/2009 7:05 PM
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i'm actually considering throwing away my core i7 after this article. thats it, i'm going all AMD next build. I SWEAR!!

astrodudepsu 09/22/2009 7:06 PM
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moazbhutta 09/22/2009 7:07 PM
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dheadley 09/22/2009 7:08 PM
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soo-nah-mee 09/22/2009 7:18 PM
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I hope this results in more sales for AMD. It's not that I hate Intel, I'd just like to see more balance in the competition for the consumer's benefit. AMD deserves much more credit than their commercial sales reflects, and this story shows a major reason why.

soo-nah-mee 09/22/2009 7:19 PM
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..in fact this just pushed my over the fence. I'm going to order a Phenom II X4 965 to upgrade my 720 right now.

crisisavatar 09/22/2009 7:22 PM
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This is why my money goes to AMD when they have competing parts.

charlesxuma 09/22/2009 7:24 PM
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soo-nah-mee :
I hope this results in more sales for AMD. It's not that I hate Intel, I'd just like to see more balance in the competition for the consumer's benefit. AMD deserves much more credit than their commercial sales reflects, and this story shows a major reason why.



i completely agree with you, thats what i'm gona do from now on, i'll be purchasing AMD/ATI only products, and hopefully others will too, doing this on large scales will balance competition and therefore even intel dedicated fans will benefit. (LONG LIVE THE UNDERDOG)

magicandy 09/22/2009 7:32 PM
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I hope this gets published on television news so more than just the internet audience will hear about this. Intel will probably do absolutely everything in its power to keep this as low-profile as possible. It's time we finally start exposing our large shyster corporations for what they really are.

Anonymous 09/22/2009 7:33 PM
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During 2003-2006 AMD had the Athlon64 lineup that was killing the Intel Pentium4 brand in all reviews and publications. AMD certainly deserves to get some of this rulings money in their pocket since Intel cost them lots of potential market-share with this obviously corrupt and illegal practices. Boy... I dont know how anybody could respect a company like Intel after something like this. Kind of makes you wonder also why their products are so unreasonably expensive.

Anonymous 09/22/2009 7:38 PM
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Gee, I wonder why AMD never managed to get their fair market share, and accompanying funds for R&D during the Athlon64 heyday... Bulldozer might have made it to market already, and wiped the floor with Core i7.

F*#& you, Intel and your fanboys...

Anonymous 09/22/2009 7:43 PM
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So, in light of this, I assume that the US Congress is going to investigate and deal with Intel accordingly? Or does Intel hire "lobbyists" to make "bribes/campaign contributions"?

njkid3 09/22/2009 7:47 PM
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ive always know in some way that intel was doing something nefarious when it came to their business practices. which is why i have stuck to amd products not just because they have better price to performance ratio but to also support a company that has been screwed and continues to be screwed.

Anonymous 09/22/2009 7:50 PM
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Intel has been doing this since the AMD K6 days.

tayb 09/22/2009 7:50 PM
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wildwell 09/22/2009 7:50 PM
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I wonder how this will impact Intel's Developer Forum today through Thursday.

nekatreven 09/22/2009 8:02 PM
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tayb :
"Unwritten agreements." Uh... I guess good luck in court? That's why we sign documents instead of shaking hands and "agreeing" on terms. I signed a lease, didn't verbally agree to the lease terms with the leasing agent. A verbal agreement would be damn tough to prove in court. Good luck evicting me for violating an unwritten agreement. Then again, this is the EU, not the US court system.



Multiple sources or correlated testimony could probably suffice as proof of a non-verbal.

Your mention of luck is not needed however. The ruling has been made and the evidence did include the agreements. I'm pretty sure this was just the EU telling Intel where to shove their appeal paperwork.

pooflinger1 09/22/2009 8:05 PM
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Anonymous 09/22/2009 8:07 PM
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kami3k 09/22/2009 8:15 PM
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l0bbyist4hire :
So, in light of this, I assume that the US Congress is going to investigate and deal with Intel accordingly? Or does Intel hire "lobbyists" to make "bribes/campaign contributions"?



Pretty sure there is going to be a anti-trust case next year in the US about Intel.

njkid3 09/22/2009 8:18 PM
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pooflinger1 :
So we should all support the prostitues since they have been screwed and continue to be screwed. I for one am rooting for intel. Not because I think they are right, and not because I like them, but because I don't want the EU to get a Damned cent. Lets see... How much of our recent economic downturn could be funded if those funds weren't stripped away from US companies... AND, last time I checked, the party trying to bribe was not the only guilty party. Last I checked it was also illegal to RECIEVE bribe money. So why aren't HP and Lenovo, etc included? Didn't they recieve money in order to take part? Kind of a messed up argument that you only prosecute or attempt to fine one side of the problem. Kinda like trying to play on the see-saw by yourself. just a bit unbalanced.



well i dont support those companies receiving the funds cause i build my own pc and dont buy prebuilt ones and plus why shouldnt we support our local prostitutes.

presidenteody 09/22/2009 8:18 PM
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Acert93 09/22/2009 8:27 PM
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tpi2007 09/22/2009 8:28 PM
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pooflinger1 :
So we should all support the prostitues since they have been screwed and continue to be screwed. I for one am rooting for intel. Not because I think they are right, and not because I like them, but because I don't want the EU to get a Damned cent. Lets see... How much of our recent economic downturn could be funded if those funds weren't stripped away from US companies... AND, last time I checked, the party trying to bribe was not the only guilty party. Last I checked it was also illegal to RECIEVE bribe money. So why aren't HP and Lenovo, etc included? Didn't they recieve money in order to take part? Kind of a messed up argument that you only prosecute or attempt to fine one side of the problem. Kinda like trying to play on the see-saw by yourself. just a bit unbalanced.




Your argument is not even an argument. Of course the other intervening parties should be punished, not just Intel. But Intel should be punished. You don't actually make a point in your text.

Secondly, AMD is also a US company. In your vision, an american company can screw at will another american company, which could have funded your economic downturn in the first place had it not been screwed by Intel during the years AMD actually, objectively had the best processor.

If you like to buy other products to put in your computer case besides a CPU, you really should consider that a free market needs rules all over the world. I don't know if you can build a computer made from US made parts alone, but even if you could you would be severly restricted in your choice.

What happens in the US affects the rest of the world, and vice-versa. Remember how the current world crisis began ?

Competition is good for the consumers, and I presume that includes you. Unless you like to pay for an overpriced CPU, an overpriced GPU, etc.

Like I said elsewhere, lack of competition results in slow R&D, suboptimal products at high prices.

Acert93 09/22/2009 8:30 PM
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mindless728 09/22/2009 8:34 PM
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@presidenteody
are you a fucking retard, AMD had the performance crown before the core2duo lineup hit in o6, so quite a bit of the time that AMD was getting screwed they were on top

and over priced GPU's, wow, you realize that the Radeon 4k series is one of the best price/performance, and since AMD acquired ATI the drivers have gotten much better, both NV and ATI now have about the same number of bugs

as for on chip GPU, yeah, enthusiasts will care about that, its pretty much their same crappy IGP, which loses to both AMD's and NV's IGp (though the stability of NV could be much better)

tpi2007 09/22/2009 8:34 PM
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seemsabitoff :
Ultimately I don't see how Intel should be fined for offering rebates to OEMs for preferring Intel's products. Businesses do that all the time. Heck, cell phone companies are allowed to do it.Really the blame falls on Dell, HP, and other PC manufacturers. They didn't have to accept the deal from Intel, but they wanted the rebates. Dell and HP had just as much power as Intel seeing as how Intel wouldn't sell any products if it weren't for them. They could have said, "Screw that. We'll just sell AMD products instead."If the EU thinks that the exclusive deals are wrong, then they should be fining the OEMs as well. However, is it wrong for an OEM to use one brand exclusively over another? I wouldn't think so.




You only have half a point there. The problem with your argument is that AMD didn't and still doesn't have the facilities to meet demand should HP, Dell, Acer, Lenovo, etc, start going away from Intel and moving towards AMD overnight. That kind of growth takes time, and AMD would surely be much more competitive, becasue they would have grown at a sustained rate, if for year after year Intel and the OEM hadn't done this kind of deal to prevent that from happening.

moricon 09/22/2009 8:43 PM
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Inclined to go with AMD from now for all my customer builds, except the high end users that need the power of i7. Cant beat intel for pure performance though, irrelevant of business practices!

tayb 09/22/2009 8:52 PM
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nekatreven :
Multiple sources or correlated testimony could probably suffice as proof of a non-verbal.Your mention of luck is not needed however. The ruling has been made and the evidence did include the agreements. I'm pretty sure this was just the EU telling Intel where to shove their appeal paperwork.



It could, in Europe, and it appears that it has. Oh well, good for the EU? Another billion or so to fund a new railway or something.


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