Chipmaker Intel Hit with Record $1.45 Billion Fine in Europe

Authored by Mark Hefflinger on May 13, 2009 - 7:57am.

Washington - As the Obama administration pledges to increase its anti-trust enforcement, the European Commission on Tuesday fined chipmaker Intel (NASD: INTC) a record $1.45 billion for engaging in what it called illegal practices designed to exclude competitors -- most notably rival AMD -- from the market for computer chips. According to the organization, those activities included giving hidden rebates to computer makers for using Intel's chips, paying a major retailer to stock only computers containing the chips and paying computer manufacturers to halt or delay the launch of products using competitors' chips.

"Such rebates and payments effectively prevented customers -- and ultimately consumers -- from choosing alternative products," the EC said in a statement.

Intel plans to appeal.

"We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace," said CEO Paul Otellini. "There has been absolutely zero harm to consumers."

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(European Commission statement)

http://snipurl.com/hygsg