The world's No.1 chipmaker has been fined a record 1.06 billion euros by the EU for their illegal sales tactics to shut out its main rival. Intel has dismissed the charge, and says it's ready to appeal.
The EU's decision could change the computer landscape forever.
The fine accounts for more than four percent of Intel's total sales in 2008. And it exceeds the 900-million euro monopoly penalty levied on Microsoft last year.
The EU Competition Commission said Intel's illegal practices include paying computer makers to delay the launch of products that use chips from its main rival AMD, paying illegal rebates to encourage manufacturers to use Intel products and paying retailers to stock only computers with Intel chips.
Neelie Kroes, EU Competition Commissioner, said, "The Commission has ordered Intel to cease the illegal practices immediately to the extent that they are still ongoing."
Intel strongly denied the charges and said it would appeal to the EU court soon.
Bruce Sewell, Intel General Council, said, "Intel has never required a customer to agree not to buy from AMD in order to obtain a discount, nor raised a customer's prices when it decided to purchase from AMD."
Intel's main rival, Advanced Micro Devices, or AMD, welcomed the fine and called it a "landmark ruling".
Jens Drews, Spokesman of AMD, said, "Their illegal practices will have to stop and it means more choice, more competition in the market place."
Experts say the historic decision shows the EU's resolve to ensure dominant companies do not shut rivals out of the market and predict the fine will have a big impact on the global IT industry.