Intel Condemns Ruling of the European Commission

Intel: We Do Not Believe Our Practices Violated European Law

by Anton Shilov
05/13/2009 | 01:29 PM

Intel Corp. said in a statement that the findings by the European Commission that accuse the world’s largest maker of chips of anticompetitive behavior are not correct. The firm claims that the EC refused to obtain evident that show Intel’s innocence and said that it would appeal.

 

“Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal,” said Paul Otellini, president and chief executive officer of Intel.

According to Intel, the company has never violated European laws and that the findings of the EC are incorrect.

"We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don't perform the market acts accordingly,” said Mr. Otellini.

The company claims that while it does provide rebates to certain partners, this is a natural behavior and this does not violate laws.

"Intel never sells products below cost. We have however, consistently invested in innovation, in manufacturing and in developing leadership technology. The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world's leading volume manufacturer of microprocessors,” the head of Intel said.

Intel will appeal against the EC ruling.

"Despite our strongly held views, as we go through the appeals process we plan to work with the Commission to ensure we're in compliance with their decision. Finally, there should be no doubt whatsoever that Intel will continue to invest in the products and technologies that provide Europe and the rest of the world the industry's best performing processors at lower prices,” Mr. Otellini claimed.