Intel Defends Itself Against The EC's Anti-Competitive Claims - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Intel Defends Itself Against The EC's Anti-Competitive Claims

If the commission finds fault against Intel, the company could be required to cease some of its business practices and pay fines.

Intel went on the defensive Friday against European Commission accusations that the chipmaker abused its dominant position in the microprocessor market and used anti-competitive practices against its rival Advanced Micro Devices.

The EC on Thursday sent Intel a Statement of Objections notifying the company the commission blames Intel for acting improperly in trying to exclude AMD from the market. Intel has 10 weeks to reply to the legal document and has the right to an oral hearing. If the commission finds fault against Intel, the company could be required to cease some of its business practices and pay fines.

In a statement issued Friday, Intel denied the charges. "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," the company said.

The EC listed three practices on the part of Intel that appeared to be anti-competitive. The first was providing substantial rebates to equipment manufacturers conditional on them obtaining all or the great majority of the processors from Intel.

Second, Intel in a number of instances made payments to induce a manufacturer to either delay or cancel the launch of a product line incorporating an AMD-based processor. And finally, Intel offered processors below cost in bids against AMD for customers in the server market.

"These three types of conduct are aimed at excluding AMD, Intel's main rival, from the market," the EC said in a statement. "Each of them is provisionally considered to constitute an abuse of a dominant position in its own right. However, the commission also considers at this stage of its analysis that the three types of conduct reinforce each other and are part of a single overall anti-competitive strategy."

In responding to the EC's findings, Intel also took a swipe at AMD, which has gained market share against Intel over the last couple of years to only see it evaporate through aggressive pricing and product releases from Intel. AMD has since reported hundreds of millions of dollars in losses over the last three quarters.

"The evidence that this industry is fiercely competitive and working is compelling," Intel said. "When competitors perform and execute the market rewards them. When they falter and underperform the market responds accordingly."

AMD has lawsuits pending against Intel in courts in the United States, South America, and other jurisdictions.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll