Intel will appeal EC $1.45B antitrust fine

Intel Corp. (NASDAQ:INTC) says it will appeal the European Commission's decision to fine the U.S. chipmaker about €1.06 billion ($1.45 billion) for abusing its dominance in the market to exclude Advanced Micro Devices. The fine levied against Intel beats the previous record for an EC antitrust fine, which was held by another U.S. high-tech company: Microsoft Corp. (NASDAQ:MSFT).

"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," says EC competition commissioner Neelie Kroes. "Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated."

CEO Paul Otellini says:

"Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace -- characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal."

Back in 2004, the EC fined Microsoft €497 million, or $677 million at current exchange rates, for blocking competition in markets for server computers and media software.

And meanwhile back in the States, the Obama administration is talking tough on antitrust. Google Inc. (NASDAQ:GOOG) is under two antitrust inquiries.