|By Maureen O'Gara||
|May 13, 2009 11:30 AM EDT||
The European Commission today fined Intel $1.45 billion because of its “illegal” rebates, which the company was told to abandon immediately. The fine is the largest single penalty the EC regulators have ever exacted, more than the combined fines Microsoft had to pay.
Intel immediately said it would appeal the decision and its general counsel Bruce Sewell said he didn’t know how to comply with the cease and desist order.
“I don’t know what would change,” he said “Intel only has a simple volume discount. The more you buy the lower the price.”
When he said that Sewell and his legal team had yet to thumb through the lengthy EC decision, believed to have been edited to survive appeal, and said he was only working off the EC press release.
Intel CEO Paul Otellini issued a statement saying, “Intel takes strong exception to this decision. We believe the decision is wrong.”
The company claimed in court last year that the EC wouldn’t accept evidence that would have vindicated it.
Otellini’s statement pressed that point. “We do not believe our practices violated European law,” he said “The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision.
We believe this evidence shows that when companies perform well the market rewards them, when they don’t perform the market acts accordingly.”
>It is unclear how exactly the EC came up with the seemingly arbitrary >1.06 billion euro fine. It is supposed to reflect the value of Intel x86
>sales in the European Economic Area over a period of five years and >three months between October 2002 and December 2007.
>Intel’s worldwide revenue in 2007 was $38.8 billion. The EU is said >to account for 30% of its sales.
>Europe’s antitrust chief Neelie Kroes joked during her press >conference in Brussels that Intel would have to change the tag line in >its new ad campaign from “sponsors of tomorrow” to “sponsor of the >European taxpayer.”
>Intel is accused of giving “wholly or partially hidden rebates” to Acer,
>Dell, HP, Lenovo and NEC on condition that they bought all, or >almost all, their x86 CPUs from Intel.
>It is also accused of paying OEMs to halt or delay the launch of AMD >boxes and to limit their distribution when they did come out.
>It is supposed to have made direct payments to Media Saturn >Holding, owner of the MediaMarkt chain, the only European entity >named in the indictment, to stock only computers with Intel x86 >CPUs.
>Kroes contends that “Intel has harmed millions of European >consumers by deliberately acting to keep competitors out of the >market for computer chips for many years. Such a serious and >sustained violation of the EU’s antitrust rules cannot be tolerated.”
>She promised to actively monitor Intel’s compliance with the >decision.The Commission said that it “does not object to rebates in themselves but to the conditions Intel attached to those rebates.”
It says the illegal condition aren’t explicit in Intel’s contracts but claims it found proof they exist when it raided Intel, OEM and retailer offices and pulled e-mail. It also has formal statements from the other companies concerned along with “evidence that Intel had sought to conceal the conditions associated with its payments.”
The EC claims Intel structured its prices to ensure that an OEM who bought AMD parts would lose a “significant rebate” on its Intel purchases. It claims the situation would have forced AMD, which it described as “just as efficient as Intel,” selling chips under cost to compete for the business.
It said AMD offered an OEM a million free CPUs but the offer was refused because the OEM would have lost Intel’s rebate on the rest of its million of chip purchasse. In the end, the OEM only took 160,000 CPUs for free.
It claims Intel-style rebates are illegal elsewhere in the world too.
At a press conference later today Intel is reportedly going to bring witnesses to refute these charges.
AMD, where today will be like Marti Gras, expects to leverage the EC’s findings in its own antitrust case against Intel in the US. It goes to trial next year and there’s a pretty penny at stake.
AMD may also finally be able to entice the Justice Department into investigating Intel, a feat that has so far eluded it though it did get Intel in Dutch with regulators in Korea and Japan as well as Brussels.
The new head of the DOJ’s Antitrust Division Christine Varney, the ex-Netscape lawyer appointed by the Obama White House, expects to “restore an aggressive enforcement policy against corporations that use their market dominance to elbow out competitors or keep them from gaining market share,” according to a speech she gave Monday morning that was first reported by the New York Times.
The policies of the Bush administration, which interpreted antitrust law differently, are supposed to have pushed the little guy to complain to the EC and regulators in the Far East.
Varney has officially rescinded the Bush guidelines for courts and private litigants memorialized in a 215-page report written by the DOJ last year that supposedly made cases involving monopoly and predatory practices hard to bring.
The move, coupled with the EC’s decision, could encourage the Federal Trade Commission, which has been investigating Intel and where Verney was once a commissioner, to turn its probe into a suit.
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 26, 2016 04:30 AM EDT Reads: 3,073
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 26, 2016 04:30 AM EDT Reads: 1,811
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
May. 26, 2016 04:15 AM EDT Reads: 2,788
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
May. 26, 2016 04:00 AM EDT Reads: 1,898
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 26, 2016 03:45 AM EDT Reads: 2,126
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
May. 26, 2016 03:00 AM EDT Reads: 3,429
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 26, 2016 12:45 AM EDT Reads: 561
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
May. 26, 2016 12:00 AM EDT Reads: 1,893
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
May. 25, 2016 10:45 PM EDT Reads: 2,637
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 25, 2016 10:00 PM EDT Reads: 910
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 25, 2016 08:30 PM EDT Reads: 1,245
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
May. 25, 2016 06:00 PM EDT Reads: 1,895
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
May. 25, 2016 05:00 PM EDT Reads: 1,730
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 25, 2016 04:45 PM EDT Reads: 982
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 25, 2016 04:00 PM EDT Reads: 1,207
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
May. 25, 2016 03:45 PM EDT Reads: 2,133
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
May. 25, 2016 02:45 PM EDT Reads: 1,457
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
May. 25, 2016 02:15 PM EDT Reads: 2,167
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 25, 2016 02:00 PM EDT Reads: 1,179
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 25, 2016 01:45 PM EDT Reads: 1,002