INNOVATION, COMPETITION AND ANTITRUST: AN EXAMINATION OF THE INTEL CASE

Abstract

Microprocessor-maker Intel has been subjected to the highest fine in the history of EU competition policy. Intel operates in a market with one other main supplier, a fact that seemed to provide grounds to those accusing it of abusing a dominant position. The authors argue that, in spite of the limited number of players, the microprocessor market showed the distinctive marks of dynamic competition: ever-lower prices and ever-growing innovation. Political considerations more than sound economic reasoning seem to be behind the EU antitrust decision.