EU fines Intel $1.45bn over monopoly

The European Commission (EC) found Intel guilty of abusing its dominant
position in the global x86 microprocessor market. In a statement, the EU said,
“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 EC's antitrust rules cannot be tolerated.” The EC
further stated that, “There is evidence that Intel had sought to conceal the
conditions associated with its payments.”

The EC decision requires Intel to change its business practices immediately
and fines Intel a record EUR 1.06 billion ($1.45 billion).

“Today's ruling is an important step toward establishing a truly competitive
market,” said Dirk Meyer, President and CEO, AMD. “AMD has consistently been a
technology innovation leader and we are looking forward to the move from a world
in which Intel ruled, to one which is ruled by customers.”

“After an exhaustive investigation, the EU came to one conclusion-Intel broke
the law and consumers were hurt,” said Tom McCoy, Executive VP-Legal Affairs,
AMD. “With this ruling, the industry will benefit from an end to Intel's
monopoly-inflated pricing and European consumers will enjoy greater choice,
value and innovation.”

In 2008, the Korea Fair Trade Commission (KFTC) issued a 26 billion won fine
(approximately $25.4 million) saying that Intel's abuse of its dominant position
included coercing and paying customers millions of dollars on the condition that
they use only Intel chips, delay launches of AMD products, and/or not develop
any new products with AMD chips. The KFTC also found that, “South Korean
consumers had to buy PCs at higher prices as domestic PC makers were forced to
buy Intel's pricier CPU.” In addition to a fine, the KFTC ordered Intel to stop
the practice of offering payments to PC makers conditioned upon them not doing
business with AMD. Intel is in the process of appealing the ruling.

In 2005, the Japan Fair Trade Commission (JFTC) ruled that Intel had violated
the country's anti-monopoly laws by illegally forcing full or partial
exclusivity with five Japanese PC makers. Intel did not appeal the ruling.

In the United States, the US Federal Trade Commission (FTC) and New York
Attorney General's office are investigating Intel for abuse of its monopoly
position. In 2005, AMD filed private litigation in the US District Court of
Delaware, which is scheduled for trial in spring 2010.