RSSSouth Korea fines Intel for anti-competitive behavior
By Ed Oswald | Published June 5, 2008, 2:49 PM
Korea's fine against Intel ends a two-year-long investigation by the Korean Fair Trade Commission into allegations of abuse of Intel's dominant position in the CPU market.
On Wednesday, the Korean FTC announced it will fine Intel 26 billion won ($25.4 million USD), for giving rebates to two Korean computer manufacturers in exchange for promises from them not to purchase chips from rival AMD.
As a result of the ruling and fine, Intel will be barred from offering rebates to manufacturers in the country in the future.
Intel maintains that it has done nothing wrong. Spokesperson Chuck Mulloy said that the company will review the Korean FTC's findings and expects to appeal it to the country's courts.
"Unfortunately the KFTC appears to have adopted AMD's accusation that Intel is competing too aggressively, by offering customers attractive, discounted prices to win their business -- despite the fact that Intel's prices invariably were above cost and profitable," Mulloy told BetaNews.
Regulators first raided Intel's offices in February 2006, seizing documents to further its case that the company was using marketing and sales quotas to gain an advantage over its competitors.
This was followed by a statement of objections last September, when the Korean FTC officially closed the investigation. Details of the agency's findings were kept private, although it is likely they contained sufficient evidence to prosecute.
It's no surprise that AMD welcomed the decision. "The KFTC's decision against Intel for anti-competitive conduct continues a stark pattern: In every country around the world where Intel's business practices have been investigated, antitrust regulators have taken action against Intel to protect consumers and the computer companies who serve them," it said in a statement to BetaNews.
Intel also faces an antitrust case in Europe, where EU regulators are looking into similar allegations of rebates in exchange for exclusivity deals. That case remains ongoing.
It seems like nobody is buying the stories that Intel and MS have used so successfully in the past. Maybe, just maybe the playing field is starting to level.
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To me there is a big difference between Intel's actions and Microsoft's actions. Aside from the ruling in California involving MS overcharging for their software, MS has mostly been involved in suits/fines regarding integration of software and/or features that are considered to give them an unfair advantage over other companies products, thus preventing competitors from being able to gain significant market share.
Intel, on the other hand, is accused of offering illegal financial incentives to use their products over their competitors. To me, assuming Intel is guilty, it is a much more serious offense to be "buying out" loyalty as opposed to including features in a software package that would make it more difficult for competitors to use their services on that product. Main reason is that in Microsoft's case (again this is assuming they are guilty as charged), you still have the ability to install Real Player, MusicMatch, FireFox, and whatever other program you wish, but in the case with Intel, consumers had no option to use Dell systems with AMD processors (I'm just using an example that is easy to measure, I realize the suit does not specifically involve Dell) or whatever.
To put it simply, assuming both are guilty, Microsoft is hampering competition and Intel is effectively preventing it.
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Im not a MAC guy, but doesn't MAC OS X come with a media player, iWorks, iPhoto, and other stuff the EU was complaining MS put into Windows?
It seems to me everyone takes jabs at MS but won't dare say anything about Apple. If MS should be sued so should Apple. Imagine Apple getting nipped for billions of dollars. It would cripple the company and every Apple Fan would crawl outta the woodworks defending them. Yet they would still proclaim MS guilt.
Oh and Intel's fine was only 26 Million? I bet they are happy with that. I would be if I were them. If the practices the govt claim are true, Intel, most likey made much more than that off of their actions.
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