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Intel Corporation Message Board

  • jesse_james_blitch jesse_james_blitch Jan 28, 2009 1:27 PM Flag

    Barrett: Intel Will Prevail

    Intel chairman sure of winning EU antitrust fight
    Intel's Craig Barrett says chip maker will prevail against EU monopoly abuse charges
    Aoife White, AP Business Writer
    Wednesday January 28, 2009, 1:06 pm EST

    BRUSSELS, Belgium (AP) -- Intel Corp. chairman Craig Barrett was adamant Wednesday that the world's biggest chip maker would win an antitrust dispute with the European Commission, a day after the company lost a legal challenge to delay a monopoly abuse investigation.
    "We have a very simple and fundamental belief in what we've done is correct and lawful," he told the AP.

    European Union regulators allege that Intel deliberately squeezes out rival AMD by offering discounts or payments to computer manufacturers and retailers choosing Intel chips. AMD is also taking a similar case through the U.S. courts in Delaware.

    If found guilty of the charges, the EU could order Intel to change its behavior under threat of large fines that can total 10 percent of yearly global revenue for each year a company breaks the law. Intel had revenues of $37.6 billion last year.

    Barrett says all Intel sales staff are instructed not to bully customers or bundle products.

    "We think that 99.9 percent of the time we behave perfectly," he said. "It's not an issue that we should change our behavior because we don't think we're doing anything wrong and we think the facts will bear that out."

    AMD strongly disagrees. Tom McCoy, head of the company's legal affairs, said the two chip makers are runners in a race that starts when one "shoots the other in the knee."

    AMD is the only real rival to Intel, which sells more than three-quarters of all microprocessors that run computers using Microsoft Corp.'s Windows operating system.

    Barrett says Intel will keep spending on new products even in the current downturn -- even as it cuts excess output and sheds up to 6,000 jobs in the U.S. and Asia. Global sales slumped by 20 percent in the final quarter of 2008.

    "If you stop your new product development machine, that means you are cutting your own throat," he said.

    He called on governments preparing new economy stimulus packages to follow suit and not "rescue 19th century jobs like agriculture," or fork over money to car makers when they could spend on education and research to generate innovation for future growth.

    "The payback is not instantaneous and so the government has to have enough foresight to say this is a good decision for the future of the country, not this is a good decision so I get re-elected in two years," he said.

    "The only three levers a government can ever pull are education, investing in research and development and ideas and the right tax policy ... to allow companies to start and grow," he said.

    Barrett says he plans to swap making chips for raising cattle when he retires to his Montana ranch in May after three decades at the Santa Clara, California-based chip maker, including a seven-year stint as chief executive.

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    • I love America!

    • " "The only three levers a government can ever pull are education, investing in research and development and ideas and the right tax policy ... to allow companies to start and grow," he said."

      This sounds strange coming from an Intel exec and would from Gates and others too.

      A US citizen or Green Card holder are not well advised to get into most engineering in the US, nor increasingly much of science either. The reason is the work visa programs - H1-B, L-1, etc. The companies misrepresent them and are moving tech wholesale offshore.

      The US is the only presently developed country that has turned over skilled immigration to corporations to administer and govern through lobbyists. A prospective worker gets an H1-B through a company and then a Green Card years later through a company, usually the same one. In between the worker is indentured and usually low-balled. If they applied to Immigration themselves, they would just be in the job market like anyone else. A citizen or GC holder cannot compete with indenture - not even by working for less. The program is now used to export tech development altogether. It has been a privilege to brain-drain the world, but the numbers became so high (and usually average workers) that a US citizen or GC holder has trouble getting jobs or having any sort of career path. The more US students that understandably bail from tech, the more the companies claim that US students are dummies and we need more work visas, causing more students to bail especially the best ones. The best US universities are claiming to reject more qualified students than ever, but companies are using the presence of "underclass" students in the system to libel them all.

      The United States is actually undeveloping. By the way, the venture capital/IPO system in the US is really broken now. Whole industries and their infrastructure companies are still moving offshore. At this point even reducing US salaries and costs by half through inflation won't slow it down that much. The US is expending its capital and borrowing power having to bail out the corrupt Street and zombie banks. Brand Wall Street is so trashed it's probably not worth rebuilding the World Trade Center - and the terrorists didn't do it the brokers and bankers did.

      Barret is blowing smoke and knows it. Zoe Loftgren, Intel's Congressperson knows it too. Teach your kids to pick grapes. Failing that be sure they're fluent in Mandarin.

    • European Union regulators allege that Intel deliberately squeezes out rival AMD by offering discounts or payments to computer manufacturers and retailers choosing Intel chips. AMD is also taking a similar case through the U.S. courts in Delaware.
      ---------------

      Honestly now... Don't you think these guys have bigger fish to fry? If the truth be told it makes the EU consumers get cheaper prices and that deosn't make people mad when they don't even have a job. I agree with the issue but it will be pushed back a long time and we all know this market is all about today and tomorrow.

      • 1 Reply to herbal_dude
      • Actually, Intel is not accused of simply offering quantity discounts which is a long standing practice. It's accused of offering discounts and support to companies that DID NOT use AMD cpu's. The news has also claimed that the EU, Japanese, and Korean FTC's have been communicating, so a multinational company is no longer bigger than the countries it operates in. Especially if it's a US company, since the clout of the US is declining daily.

        The laws governing these things were hard-won over decades, are basic to the functioning of a modern economy, and are not going to be changed for some foreign semi company. Intel could have competed 100% and done very well and been very formidable. Instead they apparently chose to go over the line. So far they haven't been fined much and the actions have made money. That may well change - stonewalling is a bad idea.

        Being over the line - "abuse of dominance" in the EU - also makes it harder for Intel to enforce its licenses. That wasn't necessary but is still a reality.

    • So Barrett likes the big bailout.
      He never did understand his economics as good as physics.
      But he sure pulled in big coin as an Intel Exec.

      • 1 Reply to areukidinbme2
      • Dr. Barrett was employed by Intel Corporation in 1974 as a manager. He was promoted to vice presidency of the corporation in 1984; to senior vice president in 1987, and executive vice president in 1990. Dr. Barrett was elected to Intel Corporation's Board of Directors in 1992 and was named the company's Chief Operating Officer in 1993. He became Intel's fourth President in May 1997, and Chief Executive Officer in 1998. He became Chairman of the Board in May 2005, when he was succeeded as a CEO by Paul Otellini.
        ------------------

        Note.......Chief Operating Officer (COO) in 1993 to 1998 Then Chief Executive Officer (CEO) till 2005.

        I don't guess INTC stock or the company has done anything since 1993?

 
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