Intel Corp. on Wednesday rejected a European Commission (EC) ruling of imposing heavy fines on the world's largest computer chip maker for antitrust violations, saying the EC decision is "wrong" and the company will appeal, Xinhua reported.
The European Commission Wednesday fined Intel 1.06 billion euros (1.45 billion U.S. dollars) for violating European antitrust rules and also ordered Intel to cease the illegal practices immediately.
In a statement issued after the ruling, Intel's chief executive officer (CEO) Paul Otellini said the company "takes strong exception" to European Commission's decision.
"We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace -- characterized by constant innovation, improved product performance and lower prices, " Otellini said.
"There has been absolutely zero harm to consumers. Intel will appeal." he added.
The European Commission said it has found that Intel engaged in specific forms of illegal practices such as giving rebates to computer manufacturers on condition that they bought all or almost all of their chips from Intel.
Intel CEO Otellini defended the company's practices, insisting that "Intel never sells products below cost."
He said Intel has consistently invested in innovation, in manufacturing and in developing leadership technology.
"The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world's leading volume manufacturer of microprocessors," Otellini said.
The European Commission ruling was welcomed by Intel's rival Advanced Micro Devices (AMD), which had filed antitrust complaints against Intel in Europe and in the United States.
"Today's ruling is an important step toward establishing a truly competitive market," Dirk Meyer, AMD's chief executive officer, said in a statement.
"AMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers," Meyer noted.
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