Regulatory rules have kicked some sand on an anticompetitive case against Intel dating back to 2000. The European Commission, the executive arm of the European Union, on Monday published a summary of Intel’s appeal of the EC’s $1.45 billion fine.
Intel officials say they stand by their decision to contest the fine imposed in May. It was the largest ever levied by the EC on a single firm.
The case against Intel began in 2000 when Intel rival Advanced Micro Devices alleged Intel’s business practices were anticompetitive. The chipmaker was accused of offering discounts to European computer manufacturers to purchase Intel’s processors instead of AMD’s. It wasn’t until 2007 that the commission decided to fine Intel, and the fine was approved in May.
“We think the decision by the commission was wrong in terms of interpreting the law,” said Chuck Mulloy, Intel’s director of communications, in a phone interview. “They got the facts wrong; they got the economics wrong.”
In the EC’s summary, Intel said the commission had not provided evidence to prove Intel was breaking any laws or acting anticompetitive.
First, Intel said, the commission failed to analyze whether Intel’s rebate arrangements with customers were implemented in the European community and had immediate, substantial and direct effects within the European community.
Intel also said the commission failed to prove Intel’s rebate arrangements were conditional upon consumers buying all x86 CPUs from Intel rather than AMD.
The commission further failed to address evidence showing that during the period of alleged infringement, AMD substantially increased its market share and its profitability and that its lack of success in certain market segments and with certain OEMS was the result of its own shortcomings, according to Intel.
“Prices are falling, capacity is increasing,” Mulloy said. “During the period of the case, AMD’s prices increased and…