Intel rivals from the anti-monopoly encirclement remains elusive win

EU anti-trust investigation of Intel to upgrade, Intel, or 3.8 billion U.S. dollars will face a huge fine.

July 17, the EU announced that three of Intel's new anti-trust allegations, which have expanded the world's computer chip giant's anti-trust investigation.

The EU warned that if found guilty, Intel will be punished by the global annual total income of 10 per cent of the hefty fines. Intel's 2007 sales of 38 billion U.S. dollars. The EU said that up to 3.8 billion U.S. dollars in hefty fines Intel may have to change their past behavior.

July 18, Intel made initial response, denied that the various issues in the wrongful act. The company will in the next eight weeks to make a formal response.

As Intel on a global scale only has the power to the competitors, another chip producer AMD's situation still seems difficult to turn for the better. On the EU announced the expansion of the Intel antitrust investigation on the same day, AMD chief executive officer-performance bleak because of "school", by Dirk »Meyer (Dirk Meyer) as the new CEO. On Dirk» to Meyer Said that in order to contend with in Intel's gain, thereby reversing AMD's current predicament is not an easy task.

In response to new allegations

EU to Intel's three new allegations are as follows: First, Intel to a major PC retailer - Germany MediaMarkt AG companies to provide generous rebates so that only the sale of Intel-based personal computer CPU; Secondly, Intel a major bribe money PC original equipment manufacturers (OEM) delay of AMD's production plans, AMD's original plan was launched by the manufacturers to embed a CPU AMD processor product line; third, with an OEM Intel to provide huge kickbacks in exchange for conditions Intel won all of its orders for notebook CPU bills.

Intel is the world's largest chip maker. In the global microprocessor market, Intel's share of over 75%. AMD and its only real rival.

Intel that the company's business model does not have any irregularities in it. Said the new allegations show that the EU largely biased towards AMD, Intel tried to block fair competition in the market. "We provide incentives, in fact ultimately will benefit consumers, but AMD does not want to see us to do so."

The EU believes that the key issue is not the monopoly of market share, but product pricing. It is said that the EU has previously said that Intel should immediately stop sales of discount products.

The EU said that below-cost pricing or predatory pricing, in the short term can really benefit consumers, but will ultimately harm the interests of consumers. Because the price war strangle competitors, consumers lost more options.

The EU also said that the three new allegations that Intel abused its suspected in the dominant position in the market, AMD will be trying to market crowding out, in violation of the anti-monopoly law.

EU allegations that Intel was "unfounded." Intel microprocessors global self-confidence (central processing unit is a function of large-scale integrated circuit devices) market in normal operation, whether in Europe or elsewhere, the competition is very full, and help to promote competition and benefit consumers.

Entangled with the proceedings

AMD and Intel's market long-standing dispute.

2003, AMD introduced the microprocessor is superior to Intel chips, after its dual-core (that is, two CPU) and 64-bit technology (the computer can handle 64-per-long data) had a serious threat to Intel's dominant market position .

But AMD has followed a series of delay in delivery server chips, Intel to technological progress as a counterattack, to regain the lost market share.

In the next 10 years in, AMD has been around the world to the regulatory authorities and the courts in the Intel antitrust suit. In order to prove that Intel's monopolistic behavior, the European Union since 2001 launched a long-term anti-trust investigation.

2007, the EU has accused Intel to discounts, marketing subsidies and low-priced products, such as means to prevent major PC manufacturers in low-priced PC and server products using AMD processors. The industry believes that the European Union in 2007 involving allegations of Intel's main wholesale markets in the block AMD, Intel's new allegations involved in the retail channel exclude AMD. In fact, Intel has been on a global scale anti-monopoly into the "encirclement and suppression" of. In June this year, South Korea's antitrust division of Intel opened a 26 million U.S. dollars tickets, because Intel South Korean PC maker to offer discounts, Samsung Electronics and other PC manufacturers to give up the procurement AMD processor. Intel in South Korea to open a ticket on the second day, the U.S. Federal Trade Commission has the monopoly of the market for Intel launched a formal investigation. In Japan, Intel also encountered the relevant departments of the investigation.

In addition, AMD is still the United States District Court submitted a civil action against Intel, the pre-trial plan in 2010. If AMD wins, it could mean that Intel will suffer billions of dollars in damages.

Long shadow

Currently, the proceedings did not block the entangled with Intel's "way of getting money."

In the second quarter of this year, the latest earnings reports, Intel profit to a record high, the second-quarter sales increased to 9.47 billion U.S. dollars on revenue of 2.3 billion U.S. dollars and net income was 1.6 billion U.S. dollars. Intel believes that this project benefited from its flexible manufacturing and commercial operations.

However, AMD in the second quarter performance was a bleak.财报显示, AMD quarter revenue amounted to 1.349 billion U.S. dollars, the loss rose to 1.19 billion U.S. dollars, representing a 2007 loss for the second quarter increased 100 percent. This is its third consecutive 7-quarter loss.

This, AMD has complained said that he always suppressed by Intel. The new CEO Dirk »Meyer headache is that this is not the only AMD facing trouble.

AMD To improve the present situation, in itself is difficult. In the past two years, sustained losses lead to AMD marketing weak, the acquisition of Canada graphics chip maker ATI heavy debt, the key to market delays, are placed in the new CEO Dirk »Meyer before the thorny problem.

Certainty is that in Dirk »Meyer's career, from the shadow of Intel's monopoly there will be lasting.

"Intel has recently increased the U.S. government's lobbying efforts, its purpose is to reduce the U.S. regulatory pressure on the company's investigation." U.S. computer and communications Industry Association President and CEO Ed »Bullock said.

Link

2007 six counts Intel AMD complaint

Intel's introduction of direct cash payments, discriminatory pricing and subsidies, and other means of the market, forcing Dell, Sony, Toshiba, Gateway and Hitachi and other major customers to sign exclusive agreements, to prevent these manufacturers to buy AMD products using Intel's discounts, subsidies and the provision of market development funds , And other means, forced other major customers, including NEC, Acer and Fujitsu signing of the exclusive agreement, restrictions on these manufacturers to buy AMD products; Intel or treated differently by means of threats and inducements to prevent large number of customers to buy AMD processor, Intel on some of the major retail To implement the quota system, the storage requirements of large retailers or can only be stored in the computer using Intel processors, limiting users the freedom of choice; Intel forced PC manufacturers and technology partners to boycott AMD product launches and promotion; Intel illegally using its market Monopolistic advantage to the industry technical standards and related products pressure, to create obstacles to the development of AMD.

Source: Financial Times