News & Information for Technology Purchasers
NewsFactor Network Sites:   NewsFactor.com Security CRM Business Sci-Tech Newsletters XML/RSS Feed  
   
Home Enterprise I.T. Hardware Software Communications More Topics...
Enterprise I.T.
Average Rating:
Rate this article:  
EC Releases Documents Behind $1.45B Intel Fine EC Releases Documents Behind $1.45B Intel Fine
By Patricia Resende
September 21, 2009 10:50AM

    Bookmark and Share
The European Commission has released internal documents from Intel customers detailing illegal rebates that led to the EC's record $1.45 billion fine. Hewlett-Packard told the EC it was required to buy 95 percent of processors from Intel. A Dell document warns of "severe" retaliation from Intel. Intel has denied the allegations and appealed.
 



The European Union is defending its decision to fine Intel Relevant Products/Services $1.45 billion for anticompetitive behavior. Its European Commission released the contents of internal documents from Intel customers providing evidence.

The documents were released after Intel alleged the EC did not have its facts straight. The contents indicate that Intel illegally gave rebates to computer manufacturers, including Dell, Hewlett-Packard Relevant Products/Services, NEC and Lenovo, on condition that they buy all or most of their x86 processors from Intel.

Intel formally appealed the fine on July 22.

Rebates and Restrictions

The EC's documents indicate Intel asked Hewlett-Packard, Acer and Lenovo to stop or delay the launch of specific products with Advanced Micro Device x86 CPUs.

HP Relevant Products/Services told the commission that Intel granted credits to the company subject to a requirement that the computer maker purchase at least 95 percent of processors for its business desktop systems from Intel and sell AMD Relevant Products/Services-based desktops only to small and midsize businesses, only via direct distribution channels (not through distributors), and postpone the launch of its first AMD-based business desktop in Europe by six months.

An internal e-mail from an HP Relevant Products/Services executive says, "You can NOT use the commercial AMD line in the channel in any country, it must be done direct. If you do and we get caught (and we will) the Intel moneys (each month) is gone (they would terminate the deal). The risk is too high."

In a February 2004 internal presentation, Dell noted that should the company switch any part of its CPU processors from Intel to AMD, Intel retaliation "could be severe and prolonged, with impact to all lines of business."

The EC also said Intel paid Europe's largest computer retailer, Media Saturn Holdings, to stock only computers with Intel chips from October 2002 to December 2007.

"It was clear to MSH in this regard that the sale of AMD-equipped computers would result at least in a reduction of the amount of Intel's contribution payments per Intel CPU under the contribution agreements (and thus in a reduction of the total payments received from Intel, even if the total volume of Intel CPUs sold by MSH would have remained the same as in previous periods), although MSH never actually tested the issue with Intel," MSH said in a submission to the commission. (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Your Comment:



Advertisement


 Enterprise I.T.
1.   Google May Make Gmail More Social
2.   IBM Power7 Server Takes on Big Load
3.   IBM Opens Cloud-Focused Data Center
4.   Google Apps Controls Mobile Devices
5.   Obama Seeks Phone-Tax Repeal


advertisement
Google Attack Highlights Black MarketGoogle Attack Highlights Black Market
Paying for bug info is hotly debated.
Average Rating:
Zuckerberg's Comments BlastedZuckerberg's Comments Blasted
Called self-serving and irrelevant.
Average Rating:
Google May Make Gmail More SocialGoogle May Make Gmail More Social
Not a Facebook or Twitter killer.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Enterprise Hardware Spotlight
Nvidia Auto-Switches Notebook GPU To Save Battery Life
Nvidia has taken the wraps off a notebook technology that chooses the best graphics processor for any given application and automatically routes the workload to Nvidia or Intel processors.
 
Microsoft Says Battery Woes Not Caused By Windows 7
Battery problems on Windows 7 machines are not caused by the operating system. That's the position of Stephen Sinofsky, head of the Windows division, in a long posting on the Windows engineering blog.
 
IBM's New POWER7 Servers Save Energy with Big Loads
IBM has unveiled high-capacity servers that are the first to be based on its new, multi-core POWER7 chip. It said the new line is designed "to manage the most demanding emerging applications."
 

Enterprise Technology Spotlight
Google May Add Facebook, Twitter Links to Gmail
Google will reportedly roll more social-networking features into Gmail, the fastest-growing e-mail service. The new features could save users the trouble of switching to Facebook or Twitter.
 
IBM's New POWER7 Servers Save Energy with Big Loads
IBM has unveiled high-capacity servers that are the first to be based on its new, multi-core POWER7 chip. It said the new line is designed "to manage the most demanding emerging applications."
 
IBM Opens Eco-Friendly, Cloud-Focused Data Center
IBM has opened its latest data center in North Carolina. Big Blue said the $362 million facility in Research Triangle Park is designed to support cloud computing and other new computing models.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Hardware | Software | Communications | Network Security | Wireless Tech | Linux/Open Source
Apple/Macintosh | Microsoft/Windows | World Wide Web | Data Storage | E-Commerce | Personal Tech | Tech Trends | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | Free Whitepapers | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2010 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo.