Intel appears to have been caught by emails that the European Commission on Monday published yesterday. The EC says that emails and documents demonstrate chip maker Intel and major computer companies, including Lenovo, NEC, Hewlett-Packard, and retailer Media Saturn Holding, had a plan to shut competitor AMD out of the European market. The details included data on rebates that were linked to tight restrictions on the amount of chips that could be purchased from AMD.
The competition watchdog yesterday imposed a $1.6-billion fine on Intel for breaching EU antitrust rules, the largest single penalty imposed on any company for competition breaches in the EU. (Financial Times)
Here are some emails the EC cited:
"[Two Lenovo executives] had a dinner with [an Intel executive] tonight (…). […] When we asked Intel what level of support we will get on NB [notebook] in next quarter, [he] told us (…) the deal is base[d] [sic] on our assumption to not launch AMD NB [notebook] platform. (…) Intel deal will not allow us to launch AMD", said in a June 2006 email. (Tech Generation Daily)
DELL
In a February 2004 email on the consequences of the possible purchase by Dell of AMD CPUs, a Dell executive wrote: "Boss, here's an outline of the framework we discussed with Intel. (…) Intel is ready to send [Intel Senior executive] /[Intel executive] /[Intel executive] to meet with [Dell Senior Executive]/[Dell Senior Executive]/[Dell Executive] . (...) Background: [Intel Senior executive] /[Intel Senior executive] are prepared for [all-out war] 1 if Dell joins the AMD exodus. We get ZERO MCP [name of Intel rebate to Dell] for at least one quarter while Intel 'investigates the details' (...) We'll also have to bite and scratch to even hold 50 percent, including a commitment to NOT ship in Corporate. If we go in Opti [Dell product series for corporate customers], they cut it to <20 percent and use the added MCP to compete against us. " (TGD)
HP
"Intel granted the credits subject to the following unwritten requirements: a) that HP should purchase at least 95 percent of its business desktop system from Intel …".
"PLEASE DO NOT… communicate to the regions, your team members or AMD that we are constrained to five percent AMD by pursuing the Intel agreement".
NEC
"NEC will (...) increase [worldwide] Intel market share from [...] percent to 80 percent. Intel will give NEC [support] and aggressive [...] price.".
For its part, Intel denies any wrong doing. (Monsters and Critics)
Intel claims "the commission relied heavily on speculation found in emails from lower-level employees that did not participate in the negotiation of the relevant agreements if they favored the commission's case". (Financial Times)
It also maintains: "At the same time, they [Commission officials]
ignored or minimized hard evidence of what actually happened, including
highly authoritative documents, written declarations, and testimony
given under oath by senior individuals who negotiated the transactions
at issue". (FT)
In any case, it does show that damaging emails can be contained in the email archives of other companies, even if you deleted all your emails.
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