2 thoughts on “Antitrust as industrial policy: lessons from the Intel case”

  1. Posted 12/04/2011 at 11:56 | Permalink

    With such large fines being extracted, it appears to me as if this is simply the levying of taxation via another means…

  2. Posted 17/04/2011 at 16:40 | Permalink

    While I’m a strong advocate of a less intrusive antitrust policy, I’m not sure I agree with the attack against the European Commission in this particular case. We have to be clear on this issue: yes, rebates can indeed enhance efficiency in some circumstances. But paying wholesalers to discontinue AMD based product lines? Paying PC manufacturers to stop or delay the launch of AMD based products? Where’s the efficiency-based argument in that? Where’s the free market approach, where we as consumers get to choose or reject AMD products based on AMD’s price, quality and performance? Intel was clearly bribing third parties to restrict consumer choice and, in the process, was distorting how competition would have naturally evolved in that market. As one very pro-free market competition lawyer said recently, Intel were undoubtedly being “naughty” in this case and restricting us from selecting who has the superior product.

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