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 …

CVS Caremark appears to be penalizing patients for patronizing competing drugstores by raising the co-payments for its pharmacy-benefits patients who fill their prescriptions elsewhere, Barbara Martinez and David Armstrong report. A trade group for independent pharmacists is today turning over letters to patients that detail the practice to Jon Leibowitz, chairman of the Federal Trade Commission. CVS says in a statement that it is "making pharmacy health care more accessible, more effective and more affordable." It claims that independent pharmacists are mischaracterizing its business practices. The letters appear to relate to a program called "Maintenance Choice," under which …

By quietly boosted its advertising of full-priced items, McDonald's is attracting customers who have more than just a buck or two in their pocket, Emily Bryson York reports. Product-specific pushes for Big Mac last July, chicken nuggets in December and the Quarter Pounder with cheese in February have resulted in double-digit sales increases for each. Although the chain remains committed to its successful Dollar Menu, market-share figures show that it has become less dependent on its lower-margin fare. The low-price menu dropped from 13% of the chain's sales to 10% during the last quarter. McDonald's is "truly going …

The Food and Drug Administration has warned General Mills that its claims that it Cheerios brand cereal lowers cholesterol and reduces the risk of heart disease and cancer violates federal law, reports Tiffany Hsu. General Mills spokesman Tom Forsythe says the science supporting the claims is solid and that the company looks forward to discussing the matter with the FDA. The FDA allows some health benefits of foods to be advertised but within strict limits. For instance, a company can say that a diet low in saturated fat and high in fiber-rich foods such as fruit, vegetables and whole …

Airlines once viewed Wi-Fi in the sky as a desirable amenity but now increasingly see it as a necessary feature, Paul Makishima reports. Following similar moves by other airlines, AirTran said Tuesday that it would offer in-flight wireless Internet access on all of its aircraft by midsummer. The airlines say they're offering Wi-Fi because passengers who are used to being able to connect with family, friends and employers online at all times are demanding it. "We had a website up ... where people could tell us what they wanted, and in-flight Wi-Fi was at the top of the list," …

Target is transforming a corner of a hundred of its discount department stores into mini-groceries stores that carry a narrow selection of products from 90% of the food categories found in a larger grocery store, Ann Zimmerman reports. It may eventually add mini-groceries to most of its 1,300 outlets as the key to its strategy to reverse declining sales. The retailer seems to be moving closer to the Wal-Mart mold of selling more food and emphasizing low prices. It also is revamping its adverting to focus on bargains. CEO Gregg Steinhafel, however, says he has no wish to try to …

A new TV spot by Ogilvy & Mather shows the Kool-Aid Man -- that familiar cross between a smiley face, Mr. Potato Head and a fire truck -- defeating a two-liter bottle of soda in a race at the beach. "Regular Kool-Aid goes almost three times further than soda," a voiceover informs us as the generic bottle gives up the race. The new campaign stemmed from positive consumer reaction to the brand's "more smiles per gallon" positioning against soda last year, says Kool-Aid senior brand manager Gregory Nesmith. It's also part of Kraft's strategy to position its large brands …