Intel hit with record antitrust fine

05-14-2009 | REUTERS

The European Commission said Intel must pay the fine within three months

Panama Star BRUSSELS. The European Commission imposed a record 1. 06 billion euros ($1. 45 billion) fine on chipmaker Intel Corp on Wednesday and ordered it halt illegal rebates and other practices to squeeze out rival AMD.

"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," EU Competition Commissioner Neelie Kroes said.

The EU executive said Intel paid computer makers to postpone or cancel plans to launch products that used AMD chips, paid illegal, secret rebates so computer makers would use mostly or entirely Intel chips, and paid a major retailer to stock only computers with its chips. It ordered Intel "cease the illegal practices immediately to the extent that they are still ongoing."

The EU antitrust fine is the biggest imposed on an individual company. The Commission said Intel must pay the fine (4.15 percent of the company's 2008 turnover), within three months.