Intel responds to EC antitrust allegations

By Suzanne Deffree, Managing Editor, News -- 1/8/2008

Intel Corp has responded to antitrust allegations made by the European Commission (EC) and is seeking an oral hearing, according to company spokesman Chuck Mulloy.

The EC in July 2007 charged the Sunnyvale, Calif.-based chipmaker with violating European Union (EU) competition laws by allegedly abusing its dominant position in the global microprocessor market and excluding its main rival, Advanced Micro Devices Inc (AMD), from the x86 CPU market.

In its July 26 “statement of objections,” the EC claimed: Intel has provided "substantial rebates" to OEMs that agree to stipulations that they obtain all, or the great majority, of their CPU requirements from Intel; Intel has made payments in order to induce an OEM to either delay or cancel the launch of a product line incorporating an AMD-based CPU; and Intel has offered CPUs on average below cost in the context of bids against AMD-based products for strategic customers in the server segment of the market.

The EC based its allegations on evidence collected in a multi-year investigation of Intel's business practices first launched in 2001. The Commission said it founded its case on evidence seized from Intel offices and collected from PC manufacturers across Europe.

Intel had until Friday to respond to the EC’s charge. That deadline was missed, but Intel successfully gained an extension to Monday when it filed its response.

Mulloy told Electronic News that Intel’s request and any information from an oral hearing will be kept confidential, as mandated by law. The company is maintaining that it has not conducted anticompetitive practices.

If the EC proceeds with the hearing, it will either request more information from Intel, remove its allegations, or levy fines and sanctions against the company of up to 10% of Intel’s annual revenues.

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