The Commission has sent Intel a Statement of Objections about
its behaviour. It says that Intel has abused its dominant market
position in order to stop rival firm Advanced Micro Devices (AMD)
from gaining market share.
The Commission said that it believed that Intel had an "overall
anti-competitive strategy" whose elements breached the rules of the
EC Treaty in three distinct ways.
"First, Intel has provided substantial rebates to various
Original Equipment Manufacturers (OEMs) [i.e. computer makers]
conditional on them obtaining all or the great majority of their
CPU [chip] requirements from Intel," said a Commission
statement.
"Secondly, in a number of instances, Intel made payments in
order to induce an OEM to either delay or cancel the launch of a
product line incorporating an AMD-based CPU," it said. "Thirdly, in
the context of bids against AMD-based products for strategic
customers in the server segment of the market, Intel has offered
CPUs on average below cost."
Intel must respond within 10 weeks and can request an oral
hearing to defend itself against the Commission's allegations. If
the Commission finds that its allegations are correct it can order
Intel to stop certain behaviour and can fine the firm.
Intel has already said that the allegations are untrue. "The
case is based on complaints from a direct competitor rather than
customers or consumers," Intel's general counsel Bruce Sewell told
news agency Reuters. "The evidence that this industry is fiercely
competitive and working is compelling. When competitors perform and
execute the market rewards them. When they falter and under-perform
the market responds accordingly."
The Commission was responding to complaints from AMD about
Intel's behaviour and has been investigating the company for six
years. Commission officials raided Intel offices across Europe in
2005.
The Commission is still dealing with action it took against
Microsoft over anti-competitive practices three years ago.
Microsoft was fined a record €497 million and ordered to supply
access to much of its source code. The Commission claims that
Microsoft is still in violation of its orders.
