The EU’s one billion-euro fine on Intel, the US chipmaker, will not end the giant’s dominance, but the revelations about the company’s illegal business methods are damaging.
They included paying retailers not to stock products using their main rival, and paying developers to delay designs using it. “Clearly AMD has been trying to compete in the market place. What we’ve realised is that we are boxed in by a glass ceiling, glass walls that we ran against, that we could not grow beyond a certain percentage in the market. That is due to Intel’s manipulation of the market. The Commission found this to be illegal and we are looking forward to compete now on the merit of our product,” said an AMD representative. The record fine is a reflection of Intel’s 80 percent market dominance in computers. AMD is its only rival: “Intel’s response will be as it always has been. We will respect the proper administration of justice within the EC. We will comply with all appropriate measures to secure an undertaking in the amount of the fine, and we will defend ourselves vigorously by appealing this matter to the court of first instance,” said an Intel lawyer. Intel is under investigation for alleged illegal practices in several other countries, including America, and may face further action in the eight-year EU investigation.