Rumors show that Intel is going to be fined by the European Commission on Wednesday because the company has broken European antitrust rules, and they will be forced to review their rebates plans for computer manufacturers. Intel is the biggest chip manufacturer for computers, and the European Commission will announce a final decision on Wednesday, a decision which could see Intel paying a lot of money due to their marketing strategy.
Many national competition authorities have said that Intel broke the European antitrust rules. Now they are in talks with the European Commission over the Intel fine, and they will adopt a final document after all stakeholders agree on it. Intel officials have declined to comment as these are only rumors, also EU officials declined to make any statements as these are only rumors and they are concentrating on a final decision.
The problems started back in 2000 for Intel as AMD, another computer-chip manufacturer, has filed a complaint to the European Commission due to the fact that Intel were blocking AMD’s access to the computer market. AMD said that Intel were providing rebates and they were selling them below cost, so that AMD chips won’t make it to the computer manufacturers. It is said that the EU added many charges to Intel in 2007. Also, last year was a tough year for Intel as the EU added more charges. The EU said that Intel has paid a retailer to remove AMD-based computers from their store shelves.
We have to wait until Wednesday for a final decision. The European Commission can fine Intel with 10% of the company’s annual revenue, and Intel has announced a $38 billion revenue last year.
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