After a six year investigation the Commission last year
published a set of charges against the company in the form of a
'statement of objections'. It said that the company abused its
dominant market position to the disadvantage of competitor Advanced
Micro Devices (AMD).
It accused Intel of offering price cuts to computer makers on
the condition that they fulfil "all or the great majority of their
CPU [chip] requirements from Intel", according to the statement of
objections.
The Commission also accused the chip maker of having an "overall
anti-competitive strategy" which broke the EC Treaty in three
different ways.
Intel has exercised its right to ask for an oral hearing in
which it will defend itself against the charges. It will present
its case to a hearing officer who will then make a report to the
Commission.
Intel has in the past argued that both it and AMD have been
affected by downward price pressure, which it said was evidence of
healthy competition.
The Commission will make a decision on the case once it has
heard evidence from Intel, though any decision could be appealed
through the courts system. The Commission can fine Intel up to 10%
of its global revenues.
Last summer the Commission made details of its case public. It
said that as well as the rebates offered to exclusive customers, it
believed that Intel paid computer makers to cancel or delay product
lines containing AMD chips.
The case against the firm also claimed that Intel sold chips
below cost when it was in competition with AMD.
The case stems from a complaint made six years ago and follows
raids on Intel offices in 2005.
The European Commission is seen as being more bullish on
competition issues since it won a landmark court ruling backing its
€497 million fine of Microsoft on competition grounds. That ruling
was made last autumn.
