Foreign Commissions – The European Commission and Intel

Foreign Commissions – The European Commission and Intel

The European Commission fined Intel a record $1.45 Billion for breaking anti-trust law. The company‘s strategy in the European market was based on practices aiming at discouraging computer manufacturers from using the rival company’s AMD products (Hill and Hult, 2019). I think that the European Commission’s findings and findings related to Intel were valid. The company directly made an effort to convince PC manufacturers to avoid buying or reducing their purchases of AMD products. Antitrust law exists to ensure that unfair competition is eliminated from the market (Alese, 2016). Directly contacting customers and convincing them not to buy a competitor’s products is anti-competitive practice. Most importantly, offering rebates on the condition that manufacturers do not use the competitors’ products is an anti-competitive practice. Fair competition involves convincing clients of a product’s value, not sabotaging competitors’ products in the market. Therefore, the European Commission was right in fining Intel. This was necessary to protect AMD and other manufacturers and to protect consumers from the lack of access to several options from which they could choose the best value.

The actions of the European Commission may have serious implications on other non-U.S. commissions and how they influence U.S. companies wanting to do business in other parts of the world. These businesses will be forced to take into consideration the local laws of the regions in which they establish their businesses. They need to understand that international trade commissions’ aim is to protect the businesses and consumers in their territories from competitive practices that might harm their access to fair competition or quality products, respectively.

References

Alese, F. (2016). Federal antitrust and EC competition law analysis. Routledge.

Hill, C., & Hult, T., (2019). Global Business Today Asia-Pacific Perspective. McGraw-Hill Education.

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The European Commission and Intel

For this discussion, refer to the “The European Commission and Intel” case on page 249 in your text:

Do you think the European Commission’s findings and fine related to Intel were valid?
What are the future implications of non-U.S. Commissions (such as the European Commission) related to U.S. companies wanting to do business in other parts of the world?
Support your position with one additional resource from either globalEDGE or the Capella Library.