Linked by Thom Holwerda on Wed 13th May 2009 10:23 UTC
Intel As was already revealed by eWeek earlier this week, the EU has imposed a massive fine on Intel for abusing its monopoly position. The fine is larger than the one given to Microsoft: 1.06 billion EUR, or 1.44 billion USD, opposed to the 899 million EUR fine imposed upon Microsoft.
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This is bull
by bile on Wed 13th May 2009 14:25 UTC
bile
Member since:
2005-07-08

Intel working with OEMs is by definition competition. Anti-competitive behavior would include using government to force AMD to do or not do particular things... such as patents and other so called intellectual property statutes. If AMD can't compete on price they can't compete. Too bad. If they can't compete on technology they can't compete. Too bad.

Do you all advocate going after ARM for having a monopoly on the ARM architecture? Or go after those who produce ARM CPUs for being in a cartel? Intel is not a monopoly in the CPU industry. There are plenty of competitors and they all work within the same paradigm. What the EU wants is money and favor from those who dislike the big guys, not competition. If you want to punish Intel for wheeling and dealing in a way you don't like... don't buy their products and try to convince others to do the same and work toward convincing the OEMs that other companies chipsets will gain them more income and happier customers.

All this does is provide an illegitimate advantage to those companies (AMD and VIA) who aren't as well established. It's a subsidy, a bailout.

I'm hearing a lot of argumentum ad miserecordiam, argumentum ad consequentiam and argumentum ad verecundiam. Where's the economic, social, political, moral analysis of such behavior?

Reply Score: -2

RE: This is bull
by ichi on Wed 13th May 2009 14:47 in reply to "This is bull"
ichi Member since:
2007-03-06

Paying OEMs and retailers to NOT sell products from the competition is not working with OEMs, but more like bribery.

If Intel releases better processors and AMD can't compete, AMD will flop no matter what, but that's irrelevant when it comes to whether Intel broke the law and if they should be punished for that.

Reply Parent Score: 3

RE[2]: This is bull
by bile on Wed 13th May 2009 15:38 in reply to "RE: This is bull"
bile Member since:
2005-07-08

bribe:
1. Something, such as money or a favor, offered or given to a person in a position of trust to influence that person's views or conduct.
2. Something serving to influence or persuade.

It's exactly a bribe... so what? It was done without the threat of violence so was in no way illegitimate.

The only thing here which is wrong IMO is the fact Intel can use the guns of government to enforce so called intellectual property rights. That's a monopoly granted and enforced by the government which limits competition to those who play by their rules.

So what if they broke some law. Just because a law exists doesn't make it right, legitimate or moral. Sorry to jump the shark so quickly but it was the law to own other humans once and to turn in Jews to the SS. Did they break the law? Sure. Should they be punished. Absolutely not.

Edit:
I should note that some definitions of bribe include giving money for 'dishonest' behavior. That doesn't change my argument insomuch as the governments intervention except in where such a bribe would be contrary to existing contracts which that "dishonest" action may have broken. In that case the government is simply the arbitrator to a private contract conflict. It doesn't appear to me given the evidence that even that has occurred.

Edited 2009-05-13 15:53 UTC

Reply Parent Score: -1

RE: This is bull
by ronaldst on Wed 13th May 2009 19:17 in reply to "This is bull"
ronaldst Member since:
2005-06-29

"ButIt'sNotFair"(TM)

:P

Reply Parent Score: 2

RE: This is bull
by lemur2 on Thu 14th May 2009 10:46 in reply to "This is bull"
lemur2 Member since:
2007-02-17

What the EU wants is money and favor from those who dislike the big guys, not competition. If you want to punish Intel for wheeling and dealing in a way you don't like... don't buy their products and try to convince others to do the same and work toward convincing the OEMs that other companies chipsets will gain them more income and happier customers.

All this does is provide an illegitimate advantage to those companies (AMD and VIA) who aren't as well established. It's a subsidy, a bailout.

I'm hearing a lot of argumentum ad miserecordiam, argumentum ad consequentiam and argumentum ad verecundiam. Where's the economic, social, political, moral analysis of such behavior?


http://en.wikipedia.org/wiki/Tort#Competition_law

It would seem that you are not at all familiar with articles 81 and 82 of the Treaty of the European Union, and indeed other similar laws all over the world.

It is not acceptable to distort the market. A company such as Intel is simply not allowed to try to put a competitor out of business by paying money to third parties so that they do not use Intel competitors' products.

http://en.wikipedia.org/wiki/Competition_law#Dominance_and_monopoly

Under EU law, very large market shares raise a presumption that a firm is dominant, which may be rebuttable. If a firm has a dominant position, then there is "a special responsibility not to allow its conduct to impair competition on the common market".


http://en.wikipedia.org/wiki/Dominance_(economics)

This is not just opinion and anti-big-company bias ... there is a lot more to it than that.

The particular laws that Intel apparently broke:

http://en.wikipedia.org/wiki/Exclusive_dealing

Edited 2009-05-14 10:53 UTC

Reply Parent Score: 3