News and New Products

Intel Is Center Of EU Competition Probe

By Jayant Mathew, Electronic News -- Electronic News, 4/6/2001

Seems like the Europeans are taking up what the Federal Trade Commission (FTC) dropped last year. Intel Corp. is being investigated by the European Commission (EC) on possible exclusionary effects of the "Intel Inside" marketing campaign, and other subsidies offered to PC makers.

In particular, the EU is looking at whether Santa Clara, Calif.-based Intel (nasdaq: INTC) favors companies that use its chips exclusively, while punishing PC makers that use competitors' chips. The Europeans are also looking at Intel's licensing of bus architecture.

An Intel spokesman said the EC requested information several months ago about general business practices, and policies regarding bus architecture. He said Intel is fully cooperating with them.

Intel has been subject to two similar inquiries in the past by the FTC. The first, between 1991 and 1993, and the second between 1997 and September of 2000. In both cases, FTC found no conclusion of law that Intel is a monopoly, but the company settled part of the second case, Intel said.

Intel's shares dropped nearly 8 percent today to close at $23.63.