AAI Hails European Commission's Guilty Ruling in Intel Case

As the European Commission (EC) concluded its sweeping investigation of Intel today, the American Antitrust Institute (AAI) applauds the ruling that Intel is guilty of engaging in illegal monopolistic business practices in the x86 microprocessor market

“The American Antitrust Institute welcomes the European Commission’s strong stand against monopoly abuse,” said Bert Foer, president of the AAI.  “For too long, Intel has exercised an undue monopolistic influence throughout the computer industry, creating artificially high pricing while simultaneously limiting innovation and consumer choice.”

Specifically, the EC found that Intel:

• “gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel”.

• “made payments to major retailer Media Saturn Holding from October 2002 to December 2007 on condition that it exclusively sold Intel- based PCs in all countries in which Media Saturn Holding is active.“

• “interfered directly in the relations between computer manufacturers and AMD. Intel awarded computer manufacturers payments -  unrelated to any particular purchases from Intel - on condition that these computer manufacturers postponed or cancelled the launch of specific AMD-based products.”

“The Commission has correctly put the interests of consumers first," continued Foer.  "Competition drives innovation but abusive monopoly puts profits before people. We look forward to the game-changing implications the EU ruling has for Europe and we encourage antitrust authorities in the United States to move expeditiously forward in their on-going investigations.”

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For media inquiries, contact Sarah Frey at sfrey@antitrustinstitute.org  410-897-7028 or Robert Lande at 301-213-4539.

Download the press release here.