The Price of Abuse: Intel and the European Commission Decision

Abstract

The May 13, 2009 decision by the European Commission ('EC') holding that Intel violated Article 82 of the Treaty of Rome and should be fined a record amount and prohibited from engaging in certain conduct, set off a predictable four part chorus of denunciations: 1. Intel did nothing wrong and was just competing hard; 2. Intel’s discounts were good for consumers; 3. The entire matter is just another example of Europeans protecting their own against a more efficient U. S. company; and 4. Even if Intel did engage in anticompetitive activity, the fine was much too large. These assertions will be addressed in turn.

Keywords: antitrust, Intel, European Commission, competition policy, EU, anticompetitive, Treaty of Rome, fines, American Antitrust Institute

JEL Classification: K21, K33, L40