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> In the past this strategy backfired for Intel (INTC) and the same may be the fate of Nvidia. It sure as shit didn't backfire for Intel - they settled with AM
by yarg 9y ago
> In the past this strategy backfired for Intel (INTC) and the same may be the fate of Nvidia.
It sure as shit didn't backfire for Intel - they settled with AMD for $1,000,000,000.
For this price they completely hobbled AMD's ability to sell the Athlon 64, which hobbled profits (both directly and in terms of long-term branch image), which ultimately hobbled R&D.
AMD never fully recovered - and sold their foundries in order to survive.
Intel, on the other hand, got full control over the pricing of pretty much the entire x86 market for over a decade - it was well worth what they settled for.
- rasz 9y agoLets not forget another >$1B EU fine which they still didnt pay to this day (neither did Microsoft). https://www.bloomberg.com/news/articles/2017-09-06/intel-gets-boost-in-1-26-billion-fight-as-case-sent-for-review https://www.bloomberg.com/news/articles/2017-09-06/intel-get...
- ianai 9y agoProbably only forcing them to dissolve into separate entities would work. Sadly, that’s probably not possible with today’s global companies.
- singularity2001 9y agohow do they get away with not paying?
- VladTheImplier 9y agoDifferent legislations. The EU has no real power over those companies. Basically they said please be nice, please pay us 1B.
- navaati 9y agoHave they no assets on EU soil that can be seized from them ?
- shrewduser 9y agothey have a lot of fabs in germany.
- dgacmu 9y agoThey have none in Germany, but do have some in Ireland: https://en.m.wikipedia.org/wiki/List_of_semiconductor_fabrication_plants https://en.m.wikipedia.org/wiki/List_of_semiconductor_fabric...
- IAmEveryone 9y agoBullshit. The EU has exactly the same powers as the US government regarding antitrust enforcement against multinationals corporations. But, as in the US or any other society ruled by law, antitrust fines and all other executive decisions can be challenged in court. That’s what Intel did, and the case is still pending.
- ByThyGrace 9y agoIs the EU Court of Justice particularly slow? Does this kind of trial take a lot of time?
- fgonzag 9y agoIf you were ordered to pay 1 billion, you would probably hire whole attorney firms to file appeal after appeal.
- ATsch 9y agoIf I remember correctly, they are suing on a number of technicalities to delay it as far as possible?
- PaulKeeble 9y agoThe cost of rebates to HP and Dell far exceeded the fine as they made up the majority of those companeis revenue at one point. The fines were an absolute bargain especially since Intel hasn't even paid the EU one yet.