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By AOIFE WHITE, AP Business Writer Aoife White, Ap Business Writer – 55 mins ago
BRUSSELS – The European Union fined Intel Corp. a record euro1.06 billion ($1.45 billion) on Wednesday, saying the world's biggest computer chip maker used illegal sales tactics to shut out smaller rival AMD.
The fine exceeded a euro899 million monopoly abuse penalty for Microsoft Corp. last year. Intel called the decision "wrong" and said it would appeal.
Intel, based in Santa Clara, California, has about 80 percent of the world's personal computer microprocessor market — and faces just one real rival, Advanced Micro Devices Inc.
The European Commission says Intel broke EU competition law by exploiting its dominant position with a deliberate strategy to keep AMD out of the market that limited customer choice.
It said Intel gave rebates to computer manufacturers Acer, Dell, HP, Lenovo and NEC for buying all or almost all their x86 computer processing units, or CPUs, from Intel and paid them to stop or delay the launch of computers based on AMD chips.
Intel president and CEO Paul Otellini said the company would appeal to the EU courts because "the decision is wrong" and "there has been absolutely zero harm to consumers." The company promised to comply with the EU order but criticized it as extremely ambiguous.
AMD's Europe president Giuliano Meroni said the EU order "will shift the power from an abusive monopolist to computer makers, retailers and above all PC consumers."
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