The EU is investigating alleged monopolistic practices by Intel. If the case is proven Intel can be fined huge amounts. Just ask VW , they were fined €60,000,000 a couple of years ago for price fixing. The EU are also investigating Microsoft for similar practices.
My problem with fines is that they are a one-time, static, “cost of doing business” type penalty. $60M (or €60M) is only about 10% of the cost of a new chip fab, which means that AMD would not even be able to add significant infrastructure, nor be able to buy loyalty from even one retailer. $60M will buy one large ad campaign, but it won’t make Intel stop playing dirty.
How can the government really ensure Intel’s good behavior?
It may not be just a one-off fine. For instance the EU have just fined France for disregarding the policy of not catching immature fish. This fine comes with a warning that if they don’t comply and come in line, then there will be extra , very large fines, until the France complies with the directive. To quote a news report:-
13 July, 2005 - THE European Court of Justice has fined France €20 million for allowing fishermen to catch and sell fish that are smaller than what is allowed under EU regulations, eu observer.com reported.
In addition to the heavy fine, France must pay €57.8 million every six months until it complies with Brussels’ rules, the Luxembourg court ruled yesterday. This is a record sized fine in comparison with earlier rulings. It is also the first time the Court has ordered a member state to pay both a periodic penalty payment and a lump sum fine.
The European Commission said after Tuesday’s ruling that the record high fine of €20 million for a member state should serve as a warning to other countries.
So , you see the EU will not be fobbed off with someone just paying a one-off fine and writing it off to business expenses.