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Intel responds to EU's anti-trust statement

post #1 of 27
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Quote:
The European Commission today issued its statement of objections against chip giant Intel, accusing it of anti-competitive behaviour.

As we reported earlier, the world's number one maker of processor chips had been awaiting the verdict of a long-running investigation into the firm's alleged anti-trust business practice against rival firm AMD.

Intel's senior vice president Bruce Sewell strongly defended the firm's position, and said in a statement: "We are confident that the microprocessor market segment is functioning normally and that Intel's conduct has been lawful, pro-competitive and beneficial to consumers."

He added that Intel would liked to have avoided being hit by hefty costs to prove its conduct had been legal, but said: "The commission's decision to issue a statement of objections means that at last Intel will have the opportunity to hear and respond to the allegations made by our primary competitor."

The commission has accused Intel of being guilty of abusing its dominant market position in at least three separate ways that it reckoned could be linked together as "a single overall anti-competitive strategy".

It said in a statement:

First, Intel has provided substantial rebates to various Original Equipment Manufacturers (OEMs) conditional on them obtaining all or the great majority of their CPU requirements from Intel.

Secondly, in a number of instances, Intel made payments in order to induce an OEM to either delay or cancel the launch of a product line incorporating an AMD-based CPU.

Thirdly, in the context of bids against AMD-based products for strategic customers in the server segment of the market, Intel has offered CPUs on average below cost.


...
http://www.theregister.co.uk/2007/07...on_objections/
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post #2 of 27
I can see the first two points being taken in an anti-trust litigation, but the third? Sounds like a loss-leader strategy to me. Plenty of corporations use that tactic and aren't charged, because it is legal.

Still, Intel has done some shady moves in the past. I'm not pro or con Intel, so to anyone, please don't misconstrue my words and try to argue with me.
    
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post #3 of 27
Quote:
First, Intel has provided substantial rebates to various Original Equipment Manufacturers (OEMs) conditional on them obtaining all or the great majority of their CPU requirements from Intel.

Secondly, in a number of instances, Intel made payments in order to induce an OEM to either delay or cancel the launch of a product line incorporating an AMD-based CPU.

Thirdly, in the context of bids against AMD-based products for strategic customers in the server segment of the market, Intel has offered CPUs on average below cost.
That's all true though so I don't see how Intel can continue to BS...? Take the charges, pay it off and release Penryn...
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post #4 of 27
Quote:
Originally Posted by Polo224 View Post
I can see the first two points being taken in an anti-trust litigation, but the third? Sounds like a loss-leader strategy to me. Plenty of corporations use that tactic and aren't charged, because it is legal.
The loss-leader Strategy is only allowed if thats your only way to survive in the market. If it is used to gain more market share than it is prohibited. At least in the EU it is so.
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post #5 of 27
I don't see anything wrong with crushing the competition. I mean, if I had a business and I were able to provide my customers with the product by the truck loads? Why not.

If my competition couldn't keep up with the demand? Why would I show mercy?

Quote:
Intel said AMD has "a history (of) manufacturing snafus that led it to cut off microprocessor supplies to many customers, making it difficult to regain share and crippling earnings."

AMD was quick to respond to the charges. "It is true that with our early K6 processor, we had difficulty ramping one of our steppers. That hurt us for a couple of quarters,
http://www.internetnews.com/bus-news...le.php/3531781

To this date, they keep delaying and having issues with their products........petty!
post #6 of 27
Well of course every company would like to have a monopoly. But if they did, everyone would be forced to buy that companies stuff at whatever price that company wants to charge. And that's why they aren't allowed to crush the competition.
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post #7 of 27
Quote:
Originally Posted by Nasgul View Post
I don't see anything wrong with crushing the competition. I mean, if I had a business and I were able to provide my customers with the product by the truck loads? Why not.

If my competition couldn't keep up with the demand? Why would I show mercy?

http://www.internetnews.com/bus-news...le.php/3531781

To this date, they keep delaying and having issues with their products........petty!
Well buddy, if AMD was crushed by Intel you'd be stuck with your prized C2D for the next decade (maybe they'd release their next CPU in the works but that;d be it)

I dont think you realize how much having competition helps the market.. Your such an Anti-AMD Pro-Intel fan boy its not even funny. Yes i am an AMD fanboy but i still respect Intel.

Back on topic.. All of that is true and i expect Intel to have to pay the consequences.. if not.. what the hell
    
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post #8 of 27
Quote:
Originally Posted by Nasgul View Post
I don't see anything wrong with crushing the competition. I mean, if I had a business and I were able to provide my customers with the product by the truck loads? Why not.

If my competition couldn't keep up with the demand? Why would I show mercy?

http://www.internetnews.com/bus-news...le.php/3531781

To this date, they keep delaying and having issues with their products........petty!
The thoughts you are describing are called capitalism. The strong and intelligent support it... the weak, by nature, hate such a philosophy.

Quote:
Originally Posted by Ragnarok View Post
Well of course every company would like to have a monopoly. But if they did, everyone would be forced to buy that companies stuff at whatever price that company wants to charge. And that's why they aren't allowed to crush the competition.
Capitalism has a way of fixing such things itself. It does not need government interference. Just as the Ronald Reagan economy, it did quite well without government interference.

Quote:
Originally Posted by Higgins View Post
Well buddy, if AMD was crushed by Intel you'd be stuck with your prized C2D for the next decade (maybe they'd release their next CPU in the works but that;d be it)

I dont think you realize how much having competition helps the market.. Your such an Anti-AMD Pro-Intel fan boy its not even funny. Yes i am an AMD fanboy but i still respect Intel.

Back on topic.. All of that is true and i expect Intel to have to pay the consequences.. if not.. what the hell
It is NOT the governments responsibilty to ensure the successful business of AMD. If AMD cannot keep up with Intel, then that is too bad for them. Someone else will.

I am an Intel stock holder, and thus I would be absolutely delighted to see the bankruptcy of AMD. My computer is a hobby...

Intel has not done anything wrong, but the EU certainly will find something illegal... they are socialists... its a really easy thing to do.
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post #9 of 27
Quote:
Originally Posted by pauldovi View Post
The thoughts you are describing are called capitalism. The strong and intelligent support it... the weak, by nature, hate such a philosophy.

You are copiing that from Darvin, and i think not even you want to live in a 100% capitalistic world. There is no much difference between capitalism and anarchism...which leads to chaos or only a handfull controlling everything.

Its not the idea of a handfull getting rich, but a communities health to grow.
Speaking about the market, you dont need strong genes to prospere like in nature, but you need diversity to ensure commonwealth and overall growth.
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post #10 of 27
Quote:
Originally Posted by wolfschanze View Post
You are copiing that from Darvin, and i think not even you want to live in a 100% capitalistic world. There is no much difference between capitalism and anarchism...which leads to chaos or only a handfull controlling everything.

Its not the idea of a handfull getting rich, but a communities health to grow.
Speaking about the market, you dont need strong genes to prospere like in nature, but you need diversity to ensure commonwealth and overall growth.
I have never read a word of Darwin. 100% capitalism cannot exist, however, a government that has nearly no intervention with business can. The governments job is to protect people from each other, not from themselves.

Take all the money in the world and divide it evenly among all people. Within 10 years, the rich will be rich again, and the poor will be poor again.

The weak, by nature, hate a competitive philosophy. Of course they would support a socialistic society where the government provides for them.

Take a body of students. What if the professor told them that all the grades on the next test would be averaged, and everyone would get the same grade. Who would be pleased by such a policy and who would hate it?
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