Friday, May 15, 2009

Why was Intel fined in the EU, but not the US?

Ordo liberalism, says an economist:
By offering discounts to PC makers for shunning AMD chips, Intel drives down prices -- and hinders competition -- at least in the short run. "If AMD is forced out of business, then Intel may stop giving discounts, leading to consumer harm in the long run," says Froeb. "The EU is content to stop its analysis at the short run -- competitors are harmed -- whereas the US would want to see a good likelihood of long run harm to consumers to bring a case."
Academic paper on Ordo liberalism and the difference between the EU and US

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