• Financial Times, Wednesday, May 13, 2009 10:45 AM

In a case that dates back to 2000, when Advanced Micro Devices first filed a complaint that Intel was driving it out of the microprocessor chip market through unfair marketing practices, the European Union fined Intel $1.45 billion today for abusing its dominant market position and using illegal sales practices, Nikki Tait and Maija Palmer report.

"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," says Neelie Kroes, EU Competition Commissioner, in a statement. "Given that Intel has harmed millions of consumers ... the size of the fine should come as no surprise."

Intel will appeal the ruling. CEO Paul Otellini says it "ignores the reality of a highly competitive microprocessor marketplace -- characterized by constant innovation, improved product performance and lower prices."

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