Intel: We Don't 'Quash' The Competition

Intel will be vindicated in its appeal of a record $1.45 billion fine levied earlier this year by the European Commission for antitrust practices, Intel CEO Paul Otellini proclaimed Tuesday. Otellini specifically pointed out Dell as a named party in the EC ruling that was "willing to state that the [EC] characterization of that particular customer was wrong."

"We don't do exclusive deals. We don't do conditional deals, despite what you've read and what you've heard," said Otellini, speaking at the Intel Developer Forum in San Francisco. Otellini had been asked to state "point blank" whether Intel had ever "quashed the competition" in its dealings with computer manufacturers in Europe.

The EC ruled against Intel in May following a years-long investigation into the Santa Clara, Calif.-based chip giant's marketing practices with computer makers and retailers in Europe. The EC found that Intel had given secret rebates to computer manufacturers on the condition that they severely limit or completely exclude rival chip maker Advanced Micro Devices' x86 microprocessors in their product offerings.

Intel filed an appeal of the ruling with the European Court of First Instance in July, a summary of which was published by the EC this month.

In its appeal, Intel claims that EC prosecutors "refused to look at some of the evidence and, in some cases, refused to get some other evidence that was available," a contention that Otellini reiterated Tuesday.

"They have consistently ignored information that would have painted an entirely different story about those memos," he said. "We have customers who are willing to state that the characterization of that particular customer was wrong. Dell, in particular."

Otellini complained that Intel couldn't publicly reveal its side of the story due to disclosure rules. He contrasted Intel's own limited ability to defend itself with the EC's publication of "salacious e-mails" that prosecutors had "weaved together" to present his company in a poor light.

"I fully expect that we'll be exonerated on appeal," he concluded.

Intel legal spokesman Chuck Mulloy told Channelweb.com recently that he expects a ruling on Intel's appeal to take as long as two years.

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