Intel loses EU Anti-Trust Appeal and gets fined a Massive 1.4 Billion Dollars

Intel loses EU Anti-Trust Appeal and gets fined a Massive 1.4 Billion Dollars

This year is turning out to be a roller coaster ride for Intel stock
holders and fans. The company recently shutdown a major fab, namely
Costa Rica, and now has to pay a massive fine for being found guilty of
Monopolistic practices under European Law.

Intel Looses Critical Appeal in EU Court and gets fined 1.06 Euros for Monopolistic and Anti-Innovation Practices

The first thing that came to my mind was that woah, Intel could have
bought IBM’s Chip Business with that amount of green. But sadly, this
chunk of Intel’s money is going into the European Fine Jar. To those who
don’t know the context of this fine, allow me to elaborate. Basically
Intel offered rebates to OEMs such as Dell, HP and Lenovo to opt for
Intel Chips instead of AMD ones some years ago. The aforementioned OEMs
ofcourse happily accepted and gave Intel their loyalty, however, it
basically meant that AMD with its x86 rival products could not compete
on merit alone. Such type of behavior is termed as monopoly-inducing or
anti-competitive behavior. Conduct like this is basically illegal
because it grants too much power to a firm and promotes stagnation in
the innovation department.

Ironically however, Intel has become an Industry leader and can now
be considered arguably monopolistic in the compute sector. And now it
has to pay the price for that, at least in the European Market. Now this
fine was originally imposed back in 2009 and I have to say the sum is
pretty large. Infact, Intel filed the appeal on exactly these grounds,
that the sum is “Disproportionally Large” and to be fair to Intel, it
does look like it is. But if you play with fire you are going to get
burned, and if you are going to utilize grey tactics then you better be
prepared to pay the price if you get caught.

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