The European Commsion has fined Intel €1.06 billion for allegdedly abusing its power in the silicon chip market and that it excluded AMD from that market. This fine is the largest one ever imposed upon a company in respect to antitrust cases.
Intel’s formal response the European Commission’s findings with regards to the antitrust case brought by AMD were a measured one. Intel Senior Vice President and General Counsel Bruce Sewell presented Intel’s response to the findings. He stated that Intel would respect the EC’s findings but did plan to appeal within the 60-day window period.
When asked about cutting AMD out of the market by the use of conditional rebates he responded by saying, “We have never conditioned the payment of a rebate on not purchasing AMD [products].” He also stated clearly that “At no time has Intel paid money to a retailer or customer to deal or not deal with AMD.”
Sewell was then asked to comment on the undercutting allegations which he replied, “We [Intel] have maintained steadfastly that we do not sell below cost.” Intel’s stance is the same as it has maintained throughout the trial, that it is not guilty of any of the allegations and that the European Commission has not listened to all the facts. “The commission has chosen to rely on pieces of evidence that I [Sewell] would characterise as weak,” Sewell said. Intel maintains that the EC has yet to find conclusive evidence that Intel was in fact anti-competitive in its dealings and that at no point has Intel ever given money to OEMs to refrain from purchasing AMD products. Sewell insisted that the EC has not found any evidence of illicit agreements on which its findings are based.
The appeal process will undoubtedly occupy the European courts for the next few years but the landmark ruling has shaken the IT industry and will change the way business is done in the future.
Michael Reed
