Will Intel have to pay?

Back in 2005, AMD appeared on the company's website that it filed a lawsuit against its main competitor, Intel. The complaint alleges that Intel abused the monopoly position on the x86 microprocessor market and limited computer manufacturers, distributors and retailers in their dealings with AMD.

According to AMD, Intel accounted for about 80% of global x86 microprocessor sales in quantitative terms and about 90% in terms of money, which gave the corporation a steady monopoly position and exorbitant market power. The statement provides a large number of vivid examples. In particular, it is argued that Intel forced major buyers, such as Dell, Sony, Toshiba, Gateway and Hitachi to exclusive deals against AMD, with cash payments, discriminatory pricing and marketing subsidies.

Allegations were also made that Intel forced NEC, Acer and Fujitsu to conclude partial exclusivity agreements with discounts and concessions, in exchange for strict restrictions or the complete rejection of purchases from AMD.
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Sony is credited with obtaining "millions" for exclusivity. It is worth recalling that the share of AMD products in Sony orders declined from 23% in 2002 to 8% in 2003, and at the moment Sony does not buy microprocessors from AMD at all.

The complaint also suggests that Intel used its financial capabilities to block purchases of AMD products, intimidate potential consumers, force them to boycott announcements and promotions of AMD products.

The trial in the European Union should be completed by the end of July. The fact is that at this time the members of the European Commission for Competition go on summer vacation, and according to the Director General of this body, Philip Lowe, the decision on the case can be made in the “foreseeable future.”
One of the possible outcomes could be the requirement to pay a fine of $ 3.5 billion (10% of the corporation’s annual income as of 2006).

The collection of materials and the study of the circumstances of the case required a lot of time - almost two years passed since the filing of the claim, during which relevant events were held in European countries. Let me remind you that in 2005 similar claims were filed against Intel in the United States and Japan.

In addition to the payment, Intel may be required to stop the illegal actions (provided that the commission can discern those in the company's behavior).

Collected on materials iXBT for the last 2 years.