The FT’s Lex column suggests that while the European Commission may have levied a record fine against Intel, the penalty will not affect Intel’s dominance, or give AMD a new lease on life.
With about 70 per cent of the market for microprocessors – the central engine of every computer – Intel benefits from a self-reinforcing scale advantage that allows it to outspend AMD on research and development by more than four to one.
Despite the €1bn fine handed to Intel by the European Commission, it wasn’t all bad news for US tech companies in Europe on Wednesday. Ebay won a lawsuit in the French courts over sales of fake L’Oréal perfume on its auction site. A court specialised in trademark law ruled that Ebay was merely a host site for the sales of counterfeit goods and not a party to their sale. It also said Ebay, which has a $10m a year budget for fighting online crime, was doing all it could to combat fakes. Read more
Intel has come out fighting, after being slapped with a record €1.06bn fine by the EU for anti-competitive practices. Paul Otellini, chief executive, responded almost instantly with a statement that Intel planned to appeal.
“Intel takes strong exception to this decision,” he said. So the Brussels lawyers and the computer industry can now look forward to a protracted battle before there is any sort of finality to this.
The fine is certainly enormous, dwarfing even the sums Microsoft has had to pay. However, it’s not clear how much this ruling will really change. Read more
Where should Google draw the line between satisfying your search query itself, and pointing you towards some other website that can satisfy your query?
The answer to that question could have a big impact on the bottom line of many publishers around the Web.
This issue was raised by some of the new search features that Google showed off at an event at its Mountain View headquarters on Tuesday (some of which are shown here.) Read more