US trio lead on landmark Intel investigation

A trio of US firms have taken lead roles for Intel in the investigation which yesterday (13 May) resulted in one of the largest-ever fines handed out by the European Commission.

The EC handed Intel a penalty of €1.06bn (£951m) for anti-competitive behaviour and abusing its dominant position as a market leader for producing microprocessors. Intel has said that it will appeal the ruling.

Skadden Arps Slate Meagher & Flom, Gibson Dunn & Crutcher and Howrey all advised Intel on the investigation, which has been ongoing since the beginning of the decade.

Skadden took the lead role as European adviser, with the firm's team led by Brussels-based antitrust and competition partner Jim Venit. Howrey also advised on EU matters but the team was led by Washington DC-based antitrust partner Darren Bernhard. In addition, the company instructed Brick Court Chambers.

Gibson Dunn was instructed as lead US adviser, fielding a team led by Washington DC-based antitrust litigator Joseph Kattan.

Meanwhile, O'Melveny & Myers advised Intel's main competitor Advanced Micro Devices, which filed the original complaint against the company in 2000.

O'Melveny's team was headed up by Brussels managing partner and European antitrust and competition head Riccardo Celli, alongside Brussels-based antitrust partner Christian Riis-Madsen.

Celli told Legal Week: "This is the culmination of a long and thorough investigation and I am not surprised to see this outcome. This was a landmark decision and a record fine but it only represents 4% of Intel's total turnover."

EC competition commissioner Neelie Kroes said of the ruling: "Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years."

However, Intel president and CEO Paul Otellini responded: "Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace.There has been absolutely zero harm to consumers. Intel will appeal."

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