Intel to pay $1.4 billion fine for anti-competitive practices

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Europe’s second-highest court has fined Intel a record $1.4 billion for anti-competitive practices against AMD. In 2009, the European Commission has found that Intel has played unfair sales tactics by giving unlawful rebates to retailers and PC makers like HP, Dell and Lenovo, which harmed its rival AMD. Post this judgement, Intel has appealed saying that the commission has ignored “the reality of a highly competitive microprocessor marketplace.”

The Luxembourg General Court said on Thursday that, “the Commission demonstrated to the requisite legal standard that Intel attempted to conceal the anti-competitive nature of its practices and implemented a long term comprehensive strategy to foreclose AMD from the strategically most important sales channels.”

The fine amount comprises of the 4.15 percent of Intel’s 2008 turnover, which the judges consider is fair, saying the EU could have levied a penalty as high as 10 percent. Intel has expressed disappointment about the decision. “It’s a complex case which is reflected in the decision. We will begin evaluating the decision,” Intel spokeswoman Sophie Jacobs said.

VIA: Reuters

SOURCE: European Commission

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