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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Phud who wrote (253051)	6/8/2008 8:44:55 PM
From: mas_	Read Replies (1) \| Respond to of 275872

KFTC levels fines on Intel Corp. over trade joongangdaily.joins.com The nation’s corporate watchdog has fined Intel Corporation, one of the world’s IT giants, 26 billion won ($25.4 million) for unfair trade practices, the Fair Trade Commission said in a release yesterday. According to the FTC, Intel has been offering rebates to the nation’s major personal computer makers, on condition that they not purchase central processing units [CPUs] from Intel’s competitor, Advanced Micro Devices. The FTC ordered Intel to scrap the practice. The FTC said Intel had offered rebates to Samsung Electronics, the nation’s No. 1 PC maker, from the fourth quarter of 2002 to the second quarter of 2005 under the condition Samsung would not buy CPUs from AMD. Intel gave Samsung about $31.9 million in rebates. Intel had a similar deal with the nation’s No. 2 PC maker, Trigem Computer. In return for rebates, Trigem bought at least 70 percent of its CPUs from Intel between the fourth quarter of 2004 and the second quarter of 2005. Intel’s tab was $3.8 million. After a three-year investigation, the FTC said that Intel had used unfair practices to maintain its market share in Korea. Intel’s CPUs command a 91.3 percent market share in Korea to AMD’s 8.4 percent. Globally, Intel has a 79.6 percent market share while AMD has 18.2 percent. “With this correction, prices of CPUs will be lowered through fair competition,” said Jang Deuk-soo, a manager of the FTC. in.reuters.com The head of the KFTC defended his organisation's decision. "Our decision to fine the company was based on facts and the probe was not conducted with any agenda," KFTC Chairman Baek Yong-ho told a news conference. "If players cannot abide by the minimum rule of the market, we have to take firm measures to defend the interests of the market," Baek said, referring to the regulator's general stance. The KFTC said in a statement Intel offered rebates to South Korean PC makers including Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research) and Trigem Computer between 2002 and 2005 in return for not buying microprocessors from rival Advanced Micro Devices (AMD.N: Quote, Profile, Research). Intel and AMD make the central processing unit (CPU) chips at the heart of the world's personal computers and servers. The KFTC ordered Intel to stop offering the rebates and pay a fine of 26 billion won ($25.6 million), pending confirmation of revenue made by Intel as a result of the practice. "Intel's rebates were paid in return for not using its rivals' products and (this) has hurt market competition by limiting the choice of local PC makers in selecting business partners," the KTFC said. "Taking into account Intel's rebates, AMD could not possibly fight Intel even if its chips were offered for free. "South Korean consumers had to buy PCs at higher prices as domestic PC makers were forced to buy Intel's pricier CPU." So Elmer there you have it, GUILTY as SIN in the KFTC's own words. Also $35.7m is a lot of suitcases of unmarked consecutive notes ;-)