The European Union today handed down a €1.06 billion ($1.45 billion) fine against Intel today. At issue were unfair business practices against Intel's chief chip-manufacturing competitor, Advanced Micro Devices (AMD). According to EU competition commissioner, Neelie Kroes, Intel "used illegal anticompetitive practices to exclude its only competitor and reduce consumers' choice--and the whole story is about consumers. "

Kroes added that the company, "went to great lengths to cover up its anticompetitive actions."

This fine beats the previous record of €497 million levied against Microsoft for similar practices in the software and server fields. Intel CEO Paul Otellini quickly announced that the company will appeal the massive fine, stating, "We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace. There has been absolutely zero harm to consumers."