Download the Tom's Hardware App from the App Store
The reference for current tech news
Yes No
Ads

Experts: Intel Could Face More Troubles in the EU

by - source: Tom's Hardware US

Reports this week say Intel could face more charges in Europe following last week’s fine from the European Commission.

Since news of the fine the European Commission imposed on Intel hit last week, there has been a lot of confusion. Who’s getting the money? How come AMD isn’t getting a thing? To clear things up, while AMD was a victim of Intel’s actions, the European Union was not acting on behalf of AMD and so, the company gets nothing. However, experts say the result of the EU/Intel decision could result in a barrage of other European lawsuits for Intel.

PC World cites Alan Davis, an expert in competition law at Pinsent Masons, as saying Intel could face even more payouts if Intel competitors, such as AMD, take civil cases on the back of the Commission's ruling.

"This will open the floodgates for competitors to sue," said Davis. "There was a complainant in this case, AMD and without question they and other competitors will pursue a case for damages."

Davis went on to explain that, while AMD was a complainant, competitors who suffered damage to their businesses because of Intel's anti-competitive practices will not see a cent of the money Intel has to hand over to the European Commission. According to Davis, “what is likely to happen is that action will be started and a massive settlement will be made.”

For those of you interested, the $1.45 billion from Intel will go to the EU’s central budget, and will, according to the commission, reduce the contributions that Member States pay to the EU. In other words, that money goes to the countries who were affected by Intel's actions.

Share:
22
Comments
X
Submit

Comments
Add your comment
sandmanwn 05/18/2009 11:47 PM
Hide
-0+

First you pillage then you loot. You thought we actually made it to the looting didn't you?

afrobacon 05/19/2009 12:00 PM
Hide
-0+

Its not like they can't afford it...

As long as this eventually results in lower prices for the consumer, or at the very least more competition I don't see anything but good coming from this.

IzzyCraft 05/19/2009 12:07 PM
Hide
--1+

No lol it means higher prices for the consumer... intel anti competitive deals were more or less giving away processors to certain oem's as long as they don't deal with amd. So the manufactures were able to keep cost lower :) also don't think 1.4 billion is tiny to the 37.6 billion U.S. dollars net revenue,their net income or profits was only 5.3 billion or 32% of profits total of the year 2008. Take to consideration the EU is only about 19% of intel's market.

If i have this wrong go ahead prove me other wise. All in all it means higher prices, although the enthusiast market would probably never notice but you might notice a small price changes at oems like dell, acer etc.

caqde 05/19/2009 12:27 PM
Hide
-9+

Yes, Izzy you got it right in the short term, but the damages caused by this action would in the future (NOW) cause you to pay higher prices for elite technologies from that company. Intel has no competition from AMD anymore because AMD can't foot the bill to keep up with Intel. Because AMD wasn't able to get the sales they would have they don't have that extra money from those sales that they could have used to build more Fabs and/or product development teams like Intel is able to do.

deltatux 05/19/2009 12:28 PM
Hide
-4+

IzzyCraft :
No lol it means higher prices for the consumer... intel anti competitive deals were more or less giving away processors to certain oem's as long as they dont deal with amd. So the manufactures were able to keep cost lower also don't think 1.4 billion is tiny 37.6 billion U.S. dollars, net income of 5.3 billion or 32% of profits total of the year 2008. Take to consideration the EU is onyl about 19% of intel's market.If i got dis wrong go ahead prove me other wise all in all it means higher prices although the enthusiast market would probably never notice but you might notice a small price changes at oems like dell, acer etc.



It doesn't lower CPU prices. Intel will still sell you their Core 2 Quad processors for $200+. The only thing that is keeping those processors low in price is the competition from AMD. The only reasson why Intel has ever prices is pressure from AMD. Without that pressure, Intel will never drop their prices.

Even if manufacturing costs are down, Intel will still force higher prices on us if it wants to. They can even give away the processors to the large OEMs and charge us what they want if they had their way. Competition is the only reason why our prices are low.

japnoise99 05/19/2009 12:29 PM
Show
jsloan 05/19/2009 12:33 PM
Show
caqde 05/19/2009 12:35 PM
Hide
-0+

I guess what I meant to say is it really wouldn't matter you would either pay higher prices because AMD is gone/useless or higher prices in the short term while AMD starts to get off their feet again due to Intel's actions.

IzzyCraft 05/19/2009 1:43 AM
Show
curnel_D 05/19/2009 6:29 AM
Hide
--2+

And guess who really looses? Us.

Seriously, all this crap is going to start is mass layoffs from intel (likely most of their EU staff), as well as less greenbacks spent on RnD.

Sweet; Higher unemployment and lower techological advancement!
Thanks EU commission!

Anonymous 05/19/2009 6:53 AM
Hide
--3+

No matter if you prefer Intel or AMD, at the end of the day this money will be going to the European Union. AMD used to be an American company but now it appears they are selling out. Sorry AMD.....you lose again, even at the price of >$1B. If you want to win (or look competitive) start with replacing the EU flag you waive.

LiteBulb 05/19/2009 8:06 AM
Hide
-4+

worf83686 :
No matter if you prefer Intel or AMD, at the end of the day this money will be going to the European Union. AMD used to be an American company but now it appears they are selling out. Sorry AMD.....you lose again, even at the price of >$1B. If you want to win (or look competitive) start with replacing the EU flag you waive.


They wave the EU flag because that's the only entity standing up to Intel at this time. The EU must have evidence to support their claims, so they are taking the first steps to make Intel pay for their actions. Wouldn't you rejoice if another kid stood up to the big bully who always picked on you?

SpadeM 05/19/2009 1:33 PM
Hide
-2+

sandmanwn :
First you pillage then you loot. You thought we actually made it to the looting didn't you?


Curnel_D :
And guess who really looses? Us.Seriously, all this crap is going to start is mass layoffs from intel (likely most of their EU staff), as well as less greenbacks spent on RnD.Sweet; Higher unemployment and lower techological advancement! Thanks EU commission!


It's actually 1.9 billion $ since the fine was issued in euros.
http://www40.wolframalpha.com/inpu [...] to+dollars

Other then that i'm sure Intel is hurt and bleeding and will have to lay off employees in Europe to make up for the $1.9 billion out of the 38 billion profit last fiscal year.
Simply put, to us mortals that is a lot of cash, to Intel and the likes it's pocket change. All the chatter around this subject is made so that Intel can save face. It's about pride not about money.

PS: I'm from Europe

Mucke 05/19/2009 3:11 PM
Hide
-4+

I just wonder why we didn't hear of such a lawsuit yet. Since the result of the EU ruling was clear you would expect AMD to file it on the very same day.

Quote :It's actually 1.9 billion $ since the fine was issued in euros.


Nope, its 1.06 billion € or 1.45 billion $.

Quote :And guess who really looses? Us.


If AMD goes down we really loose.


By the way, I live in the EU. Yesterday Intel started sending TV ads. Guess they have image problems ;)

bill gates is your daddy 05/19/2009 4:07 PM
Hide
-0+

If Intel raises their prices due to this AMD needs to stay true to their pricing strategy and stay low. Now would not be the time to raise their bottom line to try and snag more profit. They have a chance of seeing a swarm of people coming to them if Intel has to pay this fine.

If Intel raises prices and AMD does the same I am going to start making my own CPU's...it couldn't be that hard could it?

Gin Fushicho 05/19/2009 6:03 PM
Hide
-1+

Hate to say it but.... "BOOM! Head shot!" xD Itel is getting pwned for their wrong doing. Hooray for lower prices! =D

kjm15213 05/19/2009 6:07 PM
Hide
-2+

Well it doesn't look like this is going to be the only problem for Intel if NVidia has it's way.

http://www.theinquirer.net/inquire [...] -advantage

Seems like Intel doesn't learn from it's past behavior since they never did anything wrong :) If the EU upholds their judgment, Intel might want to become a quick learner...

dman3k 05/19/2009 8:31 PM
Hide
--2+

OMG! American seaports are getting taken over by Arab Emirates under Bush! Bush is a terrorist!

eddieroolz 05/19/2009 9:54 PM
Hide
-0+

Quote :the European Union was not acting on behalf of AMD and so, the company gets nothing.


And they said they were acting for the consumers and people who were hurt.

The consumers won't get money. AMD won't get the money. It's free $1.3billion bonuses for the top EU executives! What hypocritical bastards.

Gin Fushicho 05/19/2009 11:17 PM
Hide
-0+

eddieroolz :
And they said they were acting for the consumers and people who were hurt.The consumers won't get money. AMD won't get the money. It's free $1.3billion bonuses for the top EU executives! What hypocritical bastards.



Yay Hypocrites! =D *Draws a combat knife*

jimmysmitty 05/20/2009 7:57 AM
Hide
-1+

caqde :
Yes, Izzy you got it right in the short term, but the damages caused by this action would in the future (NOW) cause you to pay higher prices for elite technologies
from that company. Intel has no competition from AMD anymore because AMD can't foot the bill to keep up with Intel. Because AMD wasn't able to get the sales they would have they don't have that extra money from those sales that they could have used to build more Fabs and/or product development teams like Intel is able to do.



You mean that nice $4.8Billion (capital B there) that AMD overspent on ATI instead of actually building FABs? Or do you not count that?

AMD didn't make enough money also because they couldn't manufacture enough CPUs to meet that demand. And with spending mroe than it was worth on ATI instead of building FABs well you know what happens when you only have 2-3 FABs compared to the competitions 10+.

Seriously, if you think Intels alleged actions were the only reason AMD doesn't have the money currently to keep up with Intel then you are sorely mistaken. A lot of these EU articles leave out a lot of important aspects such as lack of FABs, over spending on ATI and releasing a chip with a bug only to be recalled in their main market (server Optys based on K10 were stop shipped and recalled for 6 months).

Thats 6 months worth of losing money in the biggest market. Thats a lot of money to not be getting in. And now Intels Nehalem is out and it will start to eat away at AMDs 4P+ server market where they profit the most.

Ads

Best offers

Newsletters


OK
Ads