Intel Responds to the EU's Publishing of Evidence

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9:11 AM - September 23, 2009 by Jane McEntegart

Intel's CEO insists the EU overstepped the line by publishing yesterday's smoking gun email correspondence between the company and computer manufacturers.

The BBC today reports that Intel is looking forward to the day when it can stand before a court of law and appeal the European Union's ruling. Intel CEO Paul Otellini spoke to BBC News following his keynote address at IDF yesterday afternoon.

"I can't wait to get our side of the story out in the public" Otellini said. "I continue to believe and assert they (the European Commission) have got it wrong. We have appealed and we will win on appeal."

The EU yesterday posted the details of rebates Intel offered to manufacturers in exchange for not stocking AMD products or delaying and sometimes canceling AMD product launches. According to the Beeb, Otellini said yesterday, "EU prosecutors have consistently ignored information that would have painted an entirely different story about those memos."

"We are precluded from releasing our own documents, which I thought was a bit unfair," said Mr. Otellini. "In the Intel case I think they have certainly overstepped."

To read more about the emails published, check out yesterday's piece. To read Paul Otellini's comments to the BBC, click here.

Source : Tom's Hardware US

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montezuma 09/23/2009 3:38 PM
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neiroatopelcc 09/23/2009 3:43 PM
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-20+

This is not something for fanboys to fight over, it's something politicians and comporate entities have to fight over.

randomizer 09/23/2009 4:06 PM
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Intel need to be burnt for what they've done, but preferably by some other government body.

dman3k 09/23/2009 4:14 PM
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LOL, Intel fanboys supporting intel's monopolist actions. Who'd knew???

Let's use our superior market holding with inferior products to force our competitors out of business! Remember the majority of this happened during the AMD K6/K9/Athlon vs Intel Pentium 2/3/4 days.

AMD had the superior products but just couldn't penetrate the market. Imagine if they were able to get their share of the market at the time. More than likely they'll have a better processor than the Core i7's. AMD just cannot compete because they do not have the money right now.

blackened144 09/23/2009 4:31 PM
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neiroatopelcc :
This is not something for fanboys to fight over, it's something politicians and comporate entities have to fight over.


Apparently you dont visit this site that often and read the comments on the articles relating to this debacle..

njkid3 09/23/2009 5:18 PM
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-6+

im just going to wait and see how this turns out then make a judgment on it it seems to early to me.

presidenteody 09/23/2009 5:34 PM
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ceteras 09/23/2009 5:51 PM
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We shoud stop flaming, no matter on which side we are.
We, the DIY consumers will never make a difference based on our purchasing option. We can go intel/amd as much as we want.

It will only matter if AMD will get a better market share by signing deals with the big players (HP, Dell etc).
If AMD would need to ramp-up production in order to satisfy demand, it would be doable (that's what investors are there for).
They could compete in the lower end of the market (think 100$ quad core cpu)!

mitch074 09/23/2009 5:54 PM
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Wow. Intel asked the EC on what basis they were condemned, they got their answer; it's quite irrefutable, and now they cry foul for getting what they wanted.

Anonymous 09/23/2009 6:01 PM
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montezuma: Intel claims innocence without an explanation, and you are automatically accepting it as fact, that's called being a fanboy. There's no way to misinterpret what the EU said, either Intel is the villain here, or the EU just made all of that stuff on it, it's not a matter of spinning it one way or the other.

bydesign 09/23/2009 6:02 PM
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Liandros 09/23/2009 6:20 PM
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It was more like "If you only sell my product, I will give you a discount. If you sell the competitors product, we will stop selling to you"

When they threaten to hurt companies "all lines of business" and threatened to lose their income because intel decides not to sell to them if they sell AMD, then that's a BIG problem.

Anonymous 09/23/2009 6:33 PM
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major7up 09/23/2009 6:43 PM
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Regardless of who did what and who is the villain or who is the victim, I sincerely hope that the consumer wins in the end and we see better products and competition from both Intel and AMD (though I sort of root for AMD a little more!).

Kaiser_25 09/23/2009 6:45 PM
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chunkymonster 09/23/2009 7:10 PM
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Otellini and Intel Leadership should just own up to the fact that they were caught and busted. It's time for them to put on their big boy pants and take responsibility. I will ROFLMAO when they lose the appeal.

To those that assert what Intel did is the same as other rebates/discounts offered by other companies just demonstrates a lack of business acumen and fair trade practices as well as showing that they do not understand the basis of the EU lawsuit and resulting verdict. What Intel did was ILLEGAL and now they must pay for it. End of story!

master exon 09/23/2009 7:12 PM
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fudgey91 :
This is laughable. First, the emails were hand-picked and not attributed or put in any context. The EU just wanted to release some unsubstantiated mails that make them look bad. Second, even if it is exactly as painted in the emails there's nothing wrong with it. Suppose I know you sell 100,000 units a year. I tell you if you buy 80000 units a year you will get a 10% discount, and if you buy 95000 units a year you will get a 15% discount. There exists no rational system (meaning excluding socialism) where this is illegal for any kind of business, no matter if they're a "monopoly". Now, turn those unit numbers into percentages. Case closed, EU tactics disclosed as irrational and ridiculous.



I'm guessing you forgot the part where Intel offered the rebates to companies who stop using AMD products?

wildwell 09/23/2009 7:41 PM
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Keep in mind business regulations in the EU are not going to be the same as regulations (or the lack of them) here in the United States. Companies face very different rules when they go over seas. Can you imagine if Intel had this problem in China? China would be fining them for not paying the government their "fair" share of profits!

Blessedman 09/23/2009 7:42 PM
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Anonymous 09/23/2009 7:47 PM
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I mean, come on, if Intel wants to use it's monopoly status to force AMD into bankruptcy, that's their right. As a proud Intel fan, I sincerely hope that one day they are the only company making CPUs, and that they will continue to force out any other upstart companies that try to make CPUs or obtain x86 licenses.

Corporations are just like sports teams, you should pick one, root for it unconditionally, and make excuses for it's "un-sportsman-like" behavior.

/intense sarcasm

Blessedman 09/23/2009 7:47 PM
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Oh and if you think these practices only apply to Intel/AMD look at Coke and Pepsi. Coke will actually lose money selling their products to major grocery stores but only if their products are displayed first and have the most shelf frontage.

Anonymous 09/23/2009 8:05 PM
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I'm guessing you forgot the part where Intel offered the rebates to companies who stop using AMD products?

We call it exclusivity contracts. Nvidia used to hold a ton of them over companies like XFX EVGA Gainward(Palit) etc name brand manufactures it's why for the longest time ATI only had more obscure companies as brands.

It's just the EU see intel as taking every manufacture under their wing. Frankly i don't see the problem they act like AMD server cpus don't sell well, this is because AMD fails they can't replace intel's sheer number of processors so they can't really supply a company full time even if they wanted to. This is just intel taking advantage of just one section of the cpu industry the lower end consumer level cpu's to laptop and desktop manufactures.

Pei-chen 09/23/2009 10:01 PM
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p00dl3_h3r0 09/23/2009 10:59 PM
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The worse part of this whole affair is that people forget its an anti-trust issue. You can always offer quantity discounts, and that's legal. However, things change when there are only two companies in the market. If Intel is making PERCENTAGE, NOT QUANTITY, agreements with what appears to be just about every major PC manufacturer, then realistically, what kind of competition is there? It also looks like Intel is trying to keep AMD afloat by allowing some version of leeway for other companies to get the deal and use a small percentage of their product lineup for AMD products. But seriously, requiring a manufacturer to use +80% of their product? It's almost like Intel is straightup buying majority stock holdings in companies, not offering discounts. In short: quantity discounts good, percentage discounts of total sales and manufacturing bad.

micul 09/23/2009 11:10 PM
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ff

micul 09/23/2009 11:12 PM
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Pei-chen :
There is a reason why EU continuously lag behind US and East Asia in terms of technology output.


EU does not lag behind the US only behind EAST ASIA.

kutark 09/23/2009 11:27 PM
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tayb 09/23/2009 11:33 PM
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DjEaZy 09/23/2009 11:34 PM
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... win on appeal? Hmmm... they were found guilty and then after that intel haz found evidence to base the appeal on? ... or maybe... intel starts loosing ground... the larrabee seems to be a flop... the GPU starts the winning marsh with nVidia CUDA and AMD/ATi stream... intel can not afford to lose money, but they don't have the GPU capability to gain money a said from CPU sell's... and blah-blah-blah... and what i wanted to say is... what goes around, comes around...

waffle911 09/23/2009 11:50 PM
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Pei-chen :
There is a reason why EU continuously lag behind US and East Asia in terms of technology output.


No, this is why you can reasonably expect more companies to practice shady business tactics in the US and Asia.

There is a MARKED difference between "volume discounts" and "rebates" and Intel's Exclusivity Contracts (read: EXTORTION). Making OEMs comply for fear of becoming uncompetitive with one-another, Intel uses their fear of each other to rip them all off. (One Ring to rule them all, One Ring to find them, One Ring to bring the all and in the darkness bite them.)

WheelsOfConfusion 09/23/2009 11:51 PM
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kutark :
Honestly, if i were in charge of Intel, i would continue the appeal, if i lost the the appeal, i would pay the fine, and then pull every single product i make out of their market...


Good luck defending that action in front of the shareholders. "Why aren't we selling ANYTHING in Europe?"
"Oh, I decided to throw a hissy fit because the EU caught us doing bad stuff."
"And... why shouldn't we fire you and sue your moronic ass into oblivion?"

I like your firm grasp of capitalism there, sir.


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