Intel antitrust raid in Germany (and Mathieu's book)

Heir ist das IT Blogwatch: in which Intel gets raided by the Euro-feds. Not to mention what goes on inside Mathieu's cellphone...

Agam Shah reports:

Intel offices in Munich were raided by the European Commission today as part of an ongoing antitrust investigation ... The offices of German consumer electronics vendor Media Markt and DSG International, which runs retail electronics chain Dixons in the U.K., were also raided ... In 2006 ... AMD alleged that Intel paid German retail chain Media Markt not to stock PCs containing AMD processors. [more]
Aunty Beeb adds:
The initial findings of a probe by the Commission unveiled last summer concluded that the chip firm engaged in anti-competitive action ... giving rebates to customers provided they bought Intel products and offering incentives to companies to delay or cancel products containing AMD technology ... Regulators have the power to fine Intel up to 10% of annual turnover if they find it guilty of stifling competition. Intel has said it is "confident" it had acted lawfully. [more]
Eric J. Savitz quips:
I know antitrust is a serious business…but, the humor potential here is enormous. Did they have guns drawn? Were they armed…with USB drives? And when the mighty antitrust forces of the EU raided the PC retailers, did they in fact find that they were as suspected selling…Intel-powered PCs? [more]
John Paczkowski reminds us:
Bad news for Intel (INTC), which is also under investigation in New York state for alleged abuses of market power. [more]
And Michelle Kessler yawns:
It's about the trillionth investigation into whether the chip giant is unfairly squeezing out competitors. These much-ballyhooed inquiries all sound sexy, but they rarely amount to much. So why do governments keep going after Intel? It's partially because Intel has about 80% of the market for computer processors. The company with the other 20% of that market, Advanced Micro Devices, is forever howling that Intel isn't playing fair. [more]
Silver Sloth tells us How It Works:
  1. Dominant player in market cuts costs to below cost of manufacture
  2. Secondary player has to cut costs to match
  3. Secondary player has shallower pockets than dominant player and goes out of business
  4. Dominant player is now only player and can raise costs as high as they want to make back all they lost in action #1
There are reasons for market regulators, and not just because we European liberals like big government. [more]
Here's the opinion of stevedcc:
From the launch of the Athlon until the launch of the Core2, for several years, AMD had a better product, yet found major difficulties in getting market share ... it's right that [Intel] should be properly investigated. It's just a pity that any fine imposed will hurt Intel but not benefit AMD or consumers, who are the real injured parties. [more]
snowraver1 has a suggestion:
If you really want to help the industry, buy AMD so that next time you are building a computer, you will still have the option to choose the CPU. [more]
And finally...

Buffer overflow:

Other Computerworld bloggers:


Richi Jennings is an independent analyst/adviser/consultant, specializing in blogging, email, and spam. A 20 year, cross-functional IT veteran, he is also an analyst at Ferris Research. You too can pretend to be Richi's friend on Facebook, or just use boring old email: blogwatch@richi.co.uk.

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