Intel Corp was fined a staggering 1.06 billion euros ($1.45 Billion) on Wednesday and ordered to halt rebates and other practices used to squeeze out rival chip maker AMD

"Given that Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for over five years, the size of the fine should come as no surprise," said European Union Competition Commissioner Neelie Kroes at a news briefing.

The EU executive said Intel paid computer makers to postpone or cancel plans to launch products that used AMD chips, paid illegal secret rebates so computer makers would used only Intel chips.

The EU antitrust fine is the biggest imposed on an individual company. exceeding an 896 million euro penalty imposed on glass maker Saint-Gobain last year for price fixing. It also exceeds the 497 million euro fine imposed on Microsoft in 2004 for abuse of dominance.

The commission said the fine represents 4.15 percent of the company's 2008 turnover within three months of the date of the notification of the decision.

Intel's whose processors power eight of every ten PCs in the world, posted first quarter sales of $7.1Billion and generated over $10 Billion in cash last year.

Source [Reuters]