Posted on 05/18/2009 9:51:46 AM PDT by nickcarraway
One of Paul Otellini's predecessors as CEO of Intel Corp. (INTC), the legendary Andy Grove, famously declared that, in the high-pressure world of technology, "only the paranoid survive."
Four years after taking over Intel's chief executive slot, Otellini certainly has his own reasons to be a bit paranoid.
The chip giant is besieged on several fronts by allegations that it bullies and coerces customers, and doesn't play fair in competing with its smaller rival in the PC-processor space, Advanced Micro Devices (AMD).
Earlier this week, Intel was slapped with a $1.45 billion fine by the European Commission over what regulators allege were illegal practices designed to help the company maintain its market dominance. Intel has vowed to appeal the ruling and the fine - the largest ever imposed by the E.U. regulator.
Although the European fine will not likely affect Intel's position as the world's No. 1 maker of computer chips, it could become the first in a series of legal blows that would threaten to emerge as an expensive distraction for Otellini and his team.
Otellini himself expressed his frustration when asked in a call with reporters how big a burden the E.U. has become for his team.
"Well, it's expensive," Otellini said. "I haven't found a low-priced lawyer yet that's any good. You want to have the best, and they cost quite a bit. And the whole process, beyond the cost, is time-consuming."
Otellini would know. Intel's legal issues have been hanging over his head since he took over as CEO in 2005. Within weeks Otellini moved into Intel's corner office, AMD filed a civil case that contained many of the key allegations raised in later complaints in Europe, Asia and the U.S.
(Excerpt) Read more at online.wsj.com ...
Intel should take the hit an pull out of the Euroweenie market. Not a single processor should be sent there.
LOL. And give the largest market for processors away to their chief rival? Yeah that is real smart.
Should they also pull out of Japan and Korea as well who have also convicted and fined Intel for anti-trust violations?
What happens when the hammer falls on them in the US?
Rule of law is the basis of free markets. The obama administration undoes the rule of law to suit its ends.
Every nation with any sense is going to smell blood and put their sharks to work.
If I was an Intel stockholder, I wouldn't want them to "play fair".
It's called capitalism.
Intel should tell the EU to pound sand and then see how EU economies and manufacturers get along without their processors. This fine is nothing but extortion.
I agree. But then you have to take the bad with the good. At least don’t get caught or bribe your OEM’s a little more so they don’t squeel on you. Either way 1.45 billion isn’t going to kill them or effect chip pricing and one would hope it came down on appeal.
I fail to see how exactly that would punish European economies and OEM’s?
AMD would fill the void, would gain precious market share and profit and would be able to make deeper cuts to their stateside business since they would have no competition in the EU which happens to have the largest economy in the world and a larger population base than the US. If I was a share holder with Intel(I might be actually) and they did that I would quickly sale Intel and buy buy buy AMD.
AMD should stop crying in their beer and get to work on making better processors instead of trying to legislate their way our of piss poor business practices.
“This fine is nothing but extortion.”
Not to mention downright unfair in that the EU believes it has the right to fine a company up to 10% of their WORLDWIDE revenues and not just those revenues from EU sales.
The funny thing is that Intel has spent more time suing AMD over time(and most of it’s competitors) than AMD has sued Intel. In fact the only time Intel has actually won versus AMD was over the usage of MMX and the only thing AMD had to do was to acknowledge the word belongs to Intel. Seems to me that turn about is fair play. If Intel wants to play dirty by forcing OEMs and distributors to do certain things and sue the sh!t out of it’s competitors then Intels competitors should do the same thing. AMD most certainly can walk and chew gum at the same time.
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