South Korea fines Intel for anti-competitive behavior
Korea's fine against Intel ends a two-year-long investigation by the Korean Fair Trade Commission into allegations of abuse of Intel's dominant position in the CPU market.
On Wednesday, the Korean FTC announced it will fine Intel 26 billion won ($25.4 million USD), for giving rebates to two Korean computer manufacturers in exchange for promises from them not to purchase chips from rival AMD.
As a result of the ruling and fine, Intel will be barred from offering rebates to manufacturers in the country in the future.
Intel maintains that it has done nothing wrong. Spokesperson Chuck Mulloy said that the company will review the Korean FTC's findings and expects to appeal it to the country's courts.
"Unfortunately the KFTC appears to have adopted AMD's accusation that Intel is competing too aggressively, by offering customers attractive, discounted prices to win their business -- despite the fact that Intel's prices invariably were above cost and profitable," Mulloy told BetaNews.
Regulators first raided Intel's offices in February 2006, seizing documents to further its case that the company was using marketing and sales quotas to gain an advantage over its competitors.
This was followed by a statement of objections last September, when the Korean FTC officially closed the investigation. Details of the agency's findings were kept private, although it is likely they contained sufficient evidence to prosecute.
It's no surprise that AMD welcomed the decision. "The KFTC's decision against Intel for anti-competitive conduct continues a stark pattern: In every country around the world where Intel's business practices have been investigated, antitrust regulators have taken action against Intel to protect consumers and the computer companies who serve them," it said in a statement to BetaNews.
Intel also faces an antitrust case in Europe, where EU regulators are looking into similar allegations of rebates in exchange for exclusivity deals. That case remains ongoing.