Massive EU Antitrust Fine Levied Against Intel

The European Commission has fined Intel 1.06 billion Euros—about $1.45 billion—for alleged anticompetitive actions against longtime rival AMD and enjoined any future such actions, report Reuters and the NY Times. The fine, a record, is more than double the one imposed on Microsoft in 2004, and 25% larger than a 2008 penalty against a glass maker for price fixing. Intel had no immediate comment, but is expected to appeal. Other tech companies facing EU antitrust scrutiny include Google, Cisco, Microsoft and IBM, with the latter two having actually been charged.

The size of the fine underscores the dominant role European regulators have adopted in antitrust, an area of law that somewhat faded from the U.S. radar screen over the last 30 years, especially during the mostly Republican administrations in that period. That quiescence will change under Obama, according to commentators and the new head of the Department of Justice’s Antitrust Division. In any case, antitrust enforcement is an increasingly global affair and, with antitrust laws in over 100 countries, one wonders whether an international treaty might one day emerge. The political obstacles, however, are probably formidable.

Microsoft Loses EU Antitrust Appeal

An EU court ruled that Microsoft must pay a $605 million fine imposed in 2004 by the EU Competition Commission, reports CNN / Money Magazine. The fine related to Microsoft's alleged efforts to use its market power in PC OS's as leverage in the market for media players and server OS's.

The ruling was criticized by Microsoft, which hasn't decided whether to appeal, and by the U.S. Assistant Attorney General for antitrust.

Antitrust Lawyer Cries "No Tiers!"

A class action antitrust lawsuit filed today claims that the pay-cable industry is a cartel that maintains its profits by forcing customers to buy channels in prepackaged tiers, reports the AP.

The suit names numerous MSO's (cable companies), satellite companies, and cable and broadcast networks, and seeks to require that cable channels be offered a la carte. This has also long been a goal of conservative activists, who object to sex, nudity, violence, and language on some channels. There's no indication that those activists are involved in the suit, however.

The cable industry opposes a la carte, saying it would lead to higher prices, fewer channels, and higher billing and customer service costs.