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Experts: Intel Could Face More Troubles in the EU

By - Source: Tom's Hardware US | B 21 comments

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.

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  • 0 Hide
    sandmanwn , May 18, 2009 9:47 PM
    First you pillage then you loot. You thought we actually made it to the looting didn't you?
  • 0 Hide
    afrobacon , May 18, 2009 10:00 PM
    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.
  • -1 Hide
    IzzyCraft , May 18, 2009 10:07 PM
    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.
  • 9 Hide
    caqde , May 18, 2009 10:27 PM
    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.
  • 4 Hide
    deltatux , May 18, 2009 10:28 PM
    IzzyCraftNo 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.
  • -7 Hide
    japnoise99 , May 18, 2009 10:29 PM
    HAAAZAAA!
  • -9 Hide
    jsloan , May 18, 2009 10:33 PM
    happy, happy, joy, joy

    stick it to them, ha, ha, ha, ha!

    eu = pinko commies, facist socialist pigs
  • 0 Hide
    caqde , May 18, 2009 10:35 PM
    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.
  • -4 Hide
    IzzyCraft , May 18, 2009 11:43 PM
    deltatuxIt 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.

    That's the basis for a free market econ... pretty sure most people knew that it prays off that man is nothing more then evil and will do anything to benefit himself 1st but such energies can be channeled into being productive such is the ideals that structured the us Constitution.

    I mean why else would IBM contract AMD to make Intel cpus to sell to them if not to invoke competition.
  • -2 Hide
    curnel_D , May 19, 2009 4:29 AM
    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!
  • -3 Hide
    Anonymous , May 19, 2009 4:53 AM
    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.
  • 4 Hide
    LiteBulb , May 19, 2009 6:06 AM
    worf83686No 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?
  • 2 Hide
    SpadeM , May 19, 2009 11:33 AM
    sandmanwnFirst you pillage then you loot. You thought we actually made it to the looting didn't you?

    Curnel_DAnd 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/input/?i=1.4+bilion+euros+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
  • 4 Hide
    Mucke , May 19, 2009 1:11 PM
    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 ;) 
  • 0 Hide
    bill gates is your daddy , May 19, 2009 2:07 PM
    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?
  • 1 Hide
    Gin Fushicho , May 19, 2009 4:03 PM
    Hate to say it but.... "BOOM! Head shot!" xD Itel is getting pwned for their wrong doing. Hooray for lower prices! =D
  • 2 Hide
    kjm15213 , May 19, 2009 4:07 PM
    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/inquirer/news/1137394/nvidia-attacks-intel-pricing-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...
  • -2 Hide
    dman3k , May 19, 2009 6:31 PM
    OMG! American seaports are getting taken over by Arab Emirates under Bush! Bush is a terrorist!
  • 0 Hide
    eddieroolz , May 19, 2009 7:54 PM
    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.

  • 0 Hide
    Gin Fushicho , May 19, 2009 9:17 PM
    eddieroolzAnd 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*
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