|
SEOUL: South Korea’s anti-trust watchdog Thursday fined Intel, the
world’s biggest semiconductor maker, $5 million for abusing its
dominant market position after a long-running investigation.
Intel was guilty of unfair practices, the Fair
Trade Commission said, announcing a 26-billion won ($25-million)
penalty, accusing it of offering rebates to local clients and
pressuring them not to buy rival chips.
The anti-trust probe began in June 2005 after
rivals accused Intel of using its commercial muscle in dealings with
local computer manufacturers.
“We have taken an appropriate action based on
our findings that Intel has abused its market dominant position
against its weaker rival,” commission chief Baek Yong Ho told
reporters.
“This action is intended to promote
competition in the market at the benefit of consumers,” Baek
added.
A commission official earlier told Agence
France-Presse that Intel had “abused its dominant market
position” for local clients to use its chips, adding that the
watchdog would send official documents to Intel.
The commission said Intel’s rebate had helped
the company secure an average local market share of 91.3 percent
between 2001 and 2005.
Samsung Electronics received around $2.6 million
in rebates from Intel every quarter from the fourth quarter of 2002
to the second quarter of 2005, it said.
Intel’s central processing units provide the
computing power for 80 percent of the world’s personal computers.
The company has been hit by anti-trust cases in
the US, Japan and Europe. US rival Advanced Micro Devices has sued
Intel for using improper subsidies.
Intel said it would consider requesting a
further review or an appeal after examining the South Korean
commission’s decision in detail.
“We are disappointed with the decision. We
feel the commission has overlooked or ignored key evidence that
demonstrates Intel’s business practices have been fair and
lawful,” Intel’s Asia-Pacific regional spokesman Nick Jacobs
said in a statement.
“Once we’ve had a chance to review the
findings in detail it is possible that Intel will request a further
review and, if necessary, an appeal which will permit a court to
review the case independently.”
Intel is also facing a decision by Europe’s
competition watchdog, which has accused the firm of making payments
to clients to delay or cancel products using rival chips.
-- AFP
|
