EU said to be preparing big fine for Intel

THE EU COULD BE about to slap Intel with a hefty fine and a ban on doling out rebates in order to secure computer maker loyalty, say people in the know.

Bloomberg news claims a couple of sources have managed to get their grubby paws on the EU commission's 500-page draft, which is apparently doing the rounds to no less than 27 national competition authorities before a final ruling is delivered by Brussels.

The Eurocrats have been chewing on the issue of Intel's anti-competiveness (or not?) since way back in 2001 when AMD first cried ‘Uncle' on the firm's arm twisting tactics. Intel, it said, was keeping AMD out of the market by offering "substantial rebates" to computer makers who didn't sell kit with AMD chips inside.

But now it appears Brussels may have reached a decision, and sources say a ruling could be imminent.

"We have no way of knowing if it's true or not. The story looks speculative to us so we will decline to comment," Intel's Chuck Mulloy told the INQ.

Chipzilla has tried to get the case shut down by crying to the European Court of First Instance last year, but all in vain. The court ruled the commission was free to continue poking around with its rubber gloved probe, despite Intel's obvious discomfort.

Another $25 million fine - like the one incurred by Intel in South Korea recently, or another settlement like that in Japan - will not exactly dent Chipzilla financially, but in the current economy, it certainly won't be a welcome decision either. The chances are any EU punishment will be heftier than those, however.

It won't do Intel's reputation much good either, with consumers or the U.S. Federal Trade Commission, who are also investigating the firm.

Just look what happened to Microsoft.

Source