May 14, 2009

Europe fines Intel $1.45 billion

The computer chip maker Intel has been at the business end of a European Commission fine for abusing its place in the computer chip market. This is a show of strength from the regulator that sends out a signal to corporations that antitrust will not be tolerated any more.

The EU commissioner responsible, Neelie Kroes has made it clear that the fine of around $1.45 billion is justified because the consumer market has no choice in what chip they use when choosing a computer.

The global market for computer chips is currently worth around twenty two million Euros per year, which just shows the size of the market and the European market is worth around a third of that figure, hence the fine being in relation to that.

Source [NY Times]