Intel to Face EU Fine on Wednesday

To me, this is another prime example of an interfering EU, poking its nose where it has no business. Actions like this show me that there is absolutely no understanding of competitiveness or the free market. So what if Intel lowers its prices? So what if they’re trying to drive AMD out of the market and create a monopoly on computer processors? Ooh, let’s fine them for trying to succeed in business! That’s a frakking great idea. Why don’t we just impose a fine on every company in the world so that they all make the same amount of money? Next they’ll be fining my kids for getting too much pocket money compared to my neighbor’s.

I dont believe the EU works on the free market ethic anymore, its the "fair" market now

Basically they wont let a company get too big of a share of the market it operates in, because its unfair for their competitors (i know, defeats the purpose of going into business). But you have to look at it from the point of view of ourselves, the consumer. If Intel was a 100% Processor market Juggernaut then it would really charge what it likes, because people need its processors for Servers and PC's and such. And if any other processor manufacturer tried to get in it would just crush it.....

Im all for Intel getting a big dirty fine.....

It is a genuine concern that in a massively important industry such as processor manufacturing anti-competitive practices could stifle competition.

Through the practice of loss leading (rather than innovation) it is conceivable that a company with deep enough pockets could crush another smaller company by making the market so unprofitable to operate in that it can no longer afford to do business. In this sort of scenario the victor will be the wealthier company that can survive losing money for the longer period.

In the short term the consumer gets faster processors for bargain prices. Once a monopoly is established however, it is a disaster both for prices and innovation, as the victor recoups the cost of the battle and lays claim to the spoils of victory. Without a competitive impetus expensive R&D budgets will get slashed.

Though I am not a huge fan of loss leading practices, as it tends to lead to a rich get richer world, in most industries these sort of practices are not really a concern. Chip manufacturing costs billions and competition is already far too scarce in my opinion, economic manipulations should NOT dictate this market, it MUST be led by innovation.

The only real concern I have with this is with the EU itself, it is an unelected body, answerable only to itself. There is corruption in its funding mechanisms, and in the way it itself does business. Also where will this money go ?

longerlife

The money goes into the EU Kitty, jus the same as if you where fined for speeding, it would go to the UK Gov!

Suprise Suprise. The European Union fines yet another American company billions of dollars because they are too successfull.

I do agree that its better for consumers when AMD is able to compete better with Intel (I'm an AMD fan boy myself). However, breaking Intel's knees with fines to keep them articially on the same level as AMD is not the way to drive inovation or keep the industry improving. AMD needs to work on getting even with Intel by catching up in technology, not by relying on the socialist EU to keep the market "fair." I don't want to debate economic theory too much, but why would company X bother invotating itself if the government keeps company Y from driving them out of business?

Suprise Suprise. The European Union fines yet another American company billions of dollars because they are too successfull.

I do agree that its better for consumers when AMD is able to compete better with Intel (I'm an AMD fan boy myself). However, breaking Intel's knees with fines to keep them articially on the same level as AMD is not the way to drive inovation or keep the industry improving. AMD needs to work on getting even with Intel by catching up in technology, not by relying on the socialist EU to keep the market "fair." I don't want to debate economic theory too much, but why would company X bother invotating itself if the government keeps company Y from driving them out of business?

AMD is being crushed by Intels domination, as Apple used to be by Microsoft.

The sad difference is, that Apple has nothing to shout about, but, an OS, unlike a Microprocessor, can be marketed on an "edge" factor. AMD has only one comeback, and well, it can't do that at the rate it's going.

The second we get a monopoly in the CPU industry, watch moores law turn into 1/10 moores law when it applies to CPUs.

The EU is doing a good job by ensuring that fair economy is occuring within the Eurozone. I feel safer in a place where a bully is at least punished for bullying the smaller competitor.

You really think Intel offering rebates to retailers who delay or cancel the launch of AMD-based products is fair? Whatever about the EU being trigger happy with antitrust fines, paying retailers to not offer AMD-based products is disgusting, dude.

Intel should be fined.

Monopolies never helped the likes of us.

What are you talking about? The EU isn't stifling competitiveness its helping it. They aren't fining Intel for being "too successful" they are fining it because they actually paid other companies not to sell AMD goods or to delay the launch of AMD products. If you think those kind of actions are good for the market then you are retarded. The whole idea of a free market is that if someone comes up with a better/cheaper product they win control of the market and other companies must react, how can this happen if the other companies pay people not to sell their competitors products? Competition is stifled as customers cannot get those products.

Aswell longerlife: "The only real concern I have with this is with the EU itself, it is an unelected body, answerable only to itself" Ever hear of European MP's??? The people of Europe elect the European Parliament, there is a European election coming up soon infact. The leadership of the EU changes every 6 months to a different goverment within the EU, goverments which are elected by the people of the EU, this means even the smallest Country in the EU has a say in running of the EU. Oh and by the way this money will probably go into investment for investructure in some of the poorer Countries in the EU, God knows my own Country Ireland has profited hugely in terms of investment and grants etc from joining the EU.

It seems most of the people commenting here either 1: know nothing about the details of this specific case against intel and merely saw "EU to fine Intel" and decided to go on a rant or 2: know nothing about the EU and decided in their ignorance to go on rant about it. For God sake check the facts first guys.

If Intel were to drive AMD out of the market through better prices and more innovative products no one would have a problem about it, but this, this is just a gross abuse of the system and I hope they are fined up to the balls for it.

The people of Europe do indeed elect Euro MPs that is true, but these MPs can only recommend policy change... The EU itself is not a democratically elected body. The Euro MP's are an enormous waste of time.

As for benefiting poorer countries that is true, nearly every member of the EU receives more money than they contribute, EXCEPT the UK (where I am from) and Germany (France gets equal back). Us and Germany are basically paying for the whole burocratic UNELECTED money pit. Gordon Brown promised a referendum on Europe we never had one (because he would have lost). In fact my entire generation has never had a say on being a member or funding the thing and we are expected to pay for it.

Arguably being a member of a single market is beneficial to everyone, and I would happily consider the case for it, except I have never and probably will never be asked.