South Korea fines Intel $25M on anti-trust probe

The South Korea Fair Trade Commission (FTC) has fined Intel Corp. $25 million dollars for abusing its dominant market position, according to an Agence France Presse report.

After a long-running probe, the FTC found the Intel guilty of unfair practices, charging the chip giant of offering rebates to local clients and pressuring them not to buy rival chips.

The anti-trust investigation began in June 2005 after rivals claimed Intel was using its commercial muscle in dealings with local PC manufacturers. Commission chief Baek Yong-Ho told reporters they have taken the appropriate actions on the probe and found that Intel abused its market dominance against its weaker rivals. Baek added that decision is intended to promote market competition at the benefit of customers.

According to the FTC, 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 dollars in rebates from the chipmaker every quarter from the Q4 02 to Q2 05, the commission added.

Meanwhile, Intel said it would consider requesting further review or appeal after examining the South Korea FTC decision. In a statement, Intel Asia Pacific regional spokesman Nick Jacobs said the company is disappointed with the decision and felt that the FTC overlooked or ignored key evidence the chipmaker presented that demonstrates it fair and lawful business practices.