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News EU slaps Intel with record £948m fine

Discussion in 'Article Discussion' started by Tim S, 13 May 2009.

  1. Tim S

    Tim S OG

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  2. liratheal

    liratheal Sharing is Caring

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    Hot damn.

    That is one big fine.
     
  3. Blackmoon181

    Blackmoon181 Geography,Its not just colouring in

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    that is certainly more than i'll ever make :p

    however relatively speaking is that really a major dent in their income considering how much they make in a year ?
     
  4. Bauul

    Bauul Sir Bongaminge

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    Even for someone like Intel, a billion quid? That's gotta hurt.
     
  5. Tim S

    Tim S OG

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    They do turnover around $37 billion a year to put that into perspective
     
  6. Arkanrais

    Arkanrais New Member

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    Where does the money go that intel gets fined for?
    Also, it's a bit of a bad time to get fined that much.
     
  7. Bauul

    Bauul Sir Bongaminge

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    True, but their net income for Q4 2008 was $234 million. If they continue through 2009 as they did at the end of 2008, the fine wipes out their income for over five quarters. Not a good time to be Intel at any rate.
     
  8. liratheal

    liratheal Sharing is Caring

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    ...That's an even bigger number.

    Well, comparatively speaking that's not that much, really. Ahwell.
     
  9. TomH

    TomH And like that... he was gone.

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    Almost 4% of their annual turnover is huge, considering that their profit will be a lot less than the turnover.
     
  10. liratheal

    liratheal Sharing is Caring

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    Given that they're already planning to appeal the decision, I expect it will go down, probably by a lot, and if it doesn't, then I doubt there'll be an order to pay it one lump sum.
     
  11. SBS

    SBS New Member

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    Not sure if appealing will help to be honest, the EU have excellent form in this sort of thing and their cases are often watertight. What you may see is Intel offering to meet some of the antitrust requirements early or even withdrawing from certain ongoing negotiations to the advantage of AMD, VIA, etc. Only then would the fine possibly be reduced.

    Either way it's going to hit Intel rather hard but to be honest it's about time.
     
  12. Xtrafresh

    Xtrafresh It never hurts to help

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    AMEN!

    I think they are getting off easy. The charges are severe, basically they were holding the entire market hostage: OEMs, retailers, competitors, customers, everyone. And they have been doing so for a good number of years. The maximum fine that the EU can give is 10% of yearly turnover, so the nuber could have been almost four times higher. And even then, they are only counting the turnover for one year, not every year that this has been going on...

    Anyway, 1B pounds is a good enough kick in the nuts for now i suppose. Now let's see how much damages AMD will claim after this.
     
  13. mikeuk2004

    mikeuk2004 What you Looking at Fool!

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    Desktop wise I stopped buying Intel since the 486 days, however my last 2 laptops have been intel wich wasnt by choice, just because laptop as a whole was a good price or spec.
     
  14. tank_rider

    tank_rider New Member

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    Good to see Intel being pegged back for shady practices. Lets just hope a decent chunk of the fine goes to AMD to allow it to get some more R&D done to get the next gen of cpus somewhere near the core i7 range.

    In addition with the fluctuations in the money market that are currently occurring Intel could save themselves a large chunk of cash by paying when the dollar to euro rate is at it's most preferable.
     
  15. yakyb

    yakyb i hate the person above me

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    are AMD going to see a penny of this?
     
  16. Bauul

    Bauul Sir Bongaminge

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    That's how Microsoft got their fine reduced, they released versions of XP without things like WMP and IE bundled in. I doubt Intel will just say "can we make it lower please?" and the EU going "Ok" without them meeting them halfway.
     
  17. Xtrafresh

    Xtrafresh It never hurts to help

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    Everyone asks this, the answer is no.
    AMD filed a complaint with the authorities, and the authorities stop the behaviour per a fine (this one).

    Now that the fine has been given (and the behaviour documented), AMD can file a claim at a civil court to retreive damages.
     
  18. Tim S

    Tim S OG

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  19. Tim S

    Tim S OG

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    Here's a transcript from a briefing call just held with Bruce Sewell, Senior Vice President and General Counsel at Intel...

     
  20. Combinho

    Combinho Ten kinds of awesome

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    He's complaining about the fine being arbitrary. Isn't the point of a fine that it is arbitrary. Does he not understand the difference between a fine and damages.

    Also, is not most of that statement completely irrelevant, other than the fairly weak defence in the third and fourth paragraphs.
     
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