Intel Feared to Face Civil Action in Europe

Intel Feared to Face Civil Action in Europe

According to lawyer Alan Davis, Intel may be facing civil actions in Europe after being fined by the European Commission for violating competition laws. Just very recently, Intel took $1.44 billion out of its pocket to pay for the EU imposed competition fine. 
 

The chip maker was accused of making secret payments and extending kickbacks to retailers to patronize its products instead of those of its market rivals. The EU also ruled that Intel offered rebates to PC makers, to urge them to prefer its product instead of AMD's. Intel rebuffs the allegations and plans to make an appeal.

 

Subsequent to EU's ruling, Intel may also face civil charges from its competitors. 

 

"This will open the floodgates for competitors to sue," said Davis. "There was a complainant in this case, AMD [Advanced Micro Devices], and without question they and other competitors will pursue a case for damages," Davis said.

 

"The fine goes to the European Commission's coffers, not to the competitors who suffered damage to their businesses because of Intel's anti-competitive practices," he said. "What is likely to happen is that action will be started and a massive settlement will be made."

 

Davis believes EU's ruling signifies tough action against illegal competition practices. Intel's ordeal should be enough to thwart potential violators of competition laws.