EU: The Google Fine: Report: Google to appeal $2.7 billion EU fine

Google Fined by EU for abuse of market position in shopping searches

According to The Telegraph, Google is planning to file an appeal against the roughly $2.7 billion (€2.4 billion) antitrust fine imposed by the European Commission in June for abuse of market position in shopping search. The fine was the largest in EU history; the previous record fine was $1.3 billion against Intel.

Last week, Intel won a rare partial victory against EU antitrust regulators when the European Court of Justice instructed a lower court to re-examine its decision and take a closer look at the underlying facts and market impact of Intel’s behavior.

It’s not clear whether last week’s decision impacted Google’s thinking on whether or not to appeal (Google’s decision was likely made before last week). Though it will likely be in process for several years, an appeal makes sense because the company faces potential similar fines and demands for change around other types of “vertical search” results such as maps/local, travel and other categories.

Google is required to submit proposals for changes in its search results to bring them into compliance with EU rules. Google reportedly submitted its plan last month. It will be compelled to make those changes and live within them during the appeal process.

Read more: Report: Google to appeal $2.7 billion EU fine

Computer Industry: Slumping Intel to cut over 5,000 jobs

San Francisco US chip giant Intel said Friday it will trim its workforce by five percent this year as it shifts from personal computers to powering mobile gadgets. Word of the job cuts came a day after Intel reported that its net profit last year sank 13 percent but that the troubled personal computer market appeared to be stabilizing. Intel shares remained around the closing price of $25.85 in after-market trades.

"We do expect employment to come down by about five percent by the end of the year", Intel spokesman Chris Kraeuter told AFP. It is something we regularly do to make sure that the people we have match up with our priorities. Kraeuter said California-based Intel ended last year with 107,600 workers. He declined to disclose which positions or locations would be targeted for cuts. 

Read more: Slumping Intel to cut over 5,000 jobs; Business News

USA Today: Why Intel was fined in Europe -- but not the U.S. -

For the complete report from USATODAY.com click on this link

Why Intel was fined in Europe -- but not the U.S.

How come enticements Intel has used to get PC makers to install its chips over AMD's earned it a record fine from European antitrust regulators, yet are viewed as hunky dory by U.S. authorities? It comes down to differing philosophies about how a free market should function, says Luke Froeb, a former Federal Trade Commission official, and author of this economics text book. Europe maintains a strong belief in "ordoliberalism" -- which holds that many suppliers of a given product lead to healthy competition and a robust economy. But the USA believes corporations should be largely left alone to achieve economies of scale, and thus drive down prices, which ultimately benefits consumers. "Ordoliberalism is about the form of competition, whereas the U.S. approach is more about the effects of competition, " says Froeb, a professor at Vanderbilt's Owen Graduate School of Management. "The EU wants more competitors; whereas the US wants lower prices." By offering discounts to PC makers for shunning AMD chips, Intel drives down prices -- and hinders competition -- at least in the short run. "If AMD is forced out of business, then Intel may stop giving discounts, leading to consumer harm in the long run," says Froeb. "The EU is content to stop its analysis at the short run -- competitors are harmed -- whereas the US would want to see a good likelihood of long run harm to consumers to bring a case."

Forbes.com: Intel Balks At $1.5B E.U. Fine - by Parmy Olson

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Intel Balks At $1.5B E.U. Fine - by Parmy Olson

Intel just got a taste of Europe's regulatory wrath. The European Competition Commission, headed by antitrust upholder "Nickel" Neelie Kroes, has levied a record fine of 1.1 billion euros ($1.5 billion) on the American chipmaker as punishment for its anti-competitive practices against AMD. Intel has come out fighting, promising to appeal the decision. Yet while the fine won't damage the company's ample cash reserves too much, a forced change to Intel's business practices could hurt more.

Cnet Newst: EU readies sanctions against Intel - by Brooke Crothers

For the complete report from CNET News click on this link

EU readies sanctions against Intel - by Brooke Crothers

The European Commission is moving toward punitive action against Intel for violating antitrust law, according to reports.In the draft decision, the Commission states that Intel abused its market power in violation of EU antitrust law.The 500-page draft was circulated to 27 "national competition authorities" over the past few weeks.Intel has been wrangling with the EU since 2001, when AMD filed a complaint. Last July, the Commission made additional charges against Intel for abusing its dominant position in the chip market in Europe. The charges include offering inducements to European retailers for not buying processors from AMD.

Electronista: EU raids Intel's Europe offices, retailers

For the complete report from Electronista click on this link

EU raids Intel's Europe offices, retailers

European Commission officials announced today that they had launched unannounced raids on Intel and multiple major resellers of the company's systems. Both the semiconductor firm's Munich, Germany office as well as those of UK-based DSG International (which runs the Dixons and Currys chains) and Germany's Media Markt-Saturn were given the surprise visits this morning to collect information about possible antitrust violations committed by Intel and its partners. The raids have been acknowledged by Intel, which is "cooperating" with the Commission, according to spokesman Chuck Mulloy.

Intel has typically denied the claims and instead argued that the originator of the complaint, AMD itself, was using the European Commission to achieve retribution for Intel's control of the market in the area.