EU Hits Intel With $400 Million Antitrust Fine in Long-Running Computer Chip Case 

 01 September 2022, Berlin: Intel logo seen at the IFA electronics trade show. (dpa)
01 September 2022, Berlin: Intel logo seen at the IFA electronics trade show. (dpa)
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EU Hits Intel With $400 Million Antitrust Fine in Long-Running Computer Chip Case 

 01 September 2022, Berlin: Intel logo seen at the IFA electronics trade show. (dpa)
01 September 2022, Berlin: Intel logo seen at the IFA electronics trade show. (dpa)

European Union antitrust enforcers slapped Intel on Friday with a fresh $400 million fine in a long-running legal fight that the chipmaker appeared to have won last year.

The European Commission imposed the 376.4-million-euro fine after a court threw out an original 1.06-billion-euro penalty issued in 2009 over allegations that the Santa Clara, California-based company used illegal sales tactics to shut out smaller rival AMD.

The commission, the 27-nation bloc's top antitrust watchdog, accused Intel of abusing its dominant position in the global market for x86 microprocessors with a strategy to exclude rivals by using rebates and sales restrictions.

The EU’s General Court last year annulled the original decision, saying that the commission's analysis of the rebates didn't meet legal standards.

However, the court confirmed that the sales restrictions amounted to an abuse of Intel's dominant market position. It couldn't decide how the total fine could be divided up between the two offenses, leaving the commission to come up with a new number.

“The lower fine imposed by today’s decision reflects the narrower scope of the infringement compared to the 2009 Commission decision,” the EU watchdog said.

Intel's European press team didn't respond immediately to an email seeking comment.



Nvidia Says New Rule Will Weaken US Leadership in AI

The Nvidia logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Nvidia logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
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Nvidia Says New Rule Will Weaken US Leadership in AI

The Nvidia logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Nvidia logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)

Nvidia on Monday criticized a new effort by the Biden administration to tighten Washington's grip on artificial intelligence chip flows around the world, saying the regulation would jeopardize current US leadership in AI.

The new rule, which is expected to be published as soon as Monday, "threatens to derail innovation and economic growth worldwide," and would "undermine America's leadership," Nvidia Vice President of Government Affairs Ned Finkle said in a statement.

Reuters reported last month on the US Commerce Department's plan for approving global AI chip exports while also preventing bad actors from accessing them. One aim of the restrictions is to keep AI from supercharging China's military capabilities.

Finkle argued America's leading role in AI would be hurt because the rule "would impose bureaucratic control over how America's leading semiconductors, computers, systems, and even software are designed and marketed globally."

The Santa Clara, California-based company also said the rule would not improve US national security and it would control technology that is already widely available in gaming and consumer hardware.

"Rather than mitigate any threat, the new Biden rules would only weaken America's global competitiveness, undermining the innovation that has kept the US ahead," Finkle said.