On MovieTome: 10 Awesome Alien Movies
BNET Business Network:
BNET
TechRepublic
ZDNet

Posted on ZDNet News: Jul 17, 2008 1:04:33 PM

Reuters Logo BRUSSELS--European Union antitrust regulators made new accusations against chipmaker Intel on Thursday, saying it paid retailers to not sell PCs using chips made by rival Advanced Micro Devices.

The "statement of objections" from the European Commission follows 2007 charges that Intel, the world's biggest microchip producer, gave computer makers rebates to limit their use of AMD chips or avoid them altogether.

The expansion of the accusation means the Commission is now weighing charges that Intel illegally fiddled with both the wholesale and retail channels in an effort to suppress its competitor.

"The Commission also considers at this stage of its analysis that all the types of conduct reinforce each other and are part of a single overall anti-competitive strategy aimed at excluding AMD or limiting its access to the market," the EU's executive body said in a statement.

A Commission statement said Intel had provided substantial rebates to a leading European personal computer retailer, conditioned on it selling only Intel-based PCs.

Secondly, the Commission said Intel paid a PC maker to delay the planned launch of a product line incorporating an AMD-based central processing unit (CPU), the chip at the heart of every PC.

Thirdly it gave the same computer maker substantial rebates to encourage it to get all its CPUs for laptops from Intel, said the statement.

Intel has its logo on four-fifths of the central processing units that run the world's 1 billion personal computers, while AMD accounts for the rest.

The Commission could fine Intel, though any penalty would be unlikely to approach a cap of 10 percent of annual turnover. It could possibly damage the firm's reputation by labeling the company an unfair competitor.

Intel has eight days to reply to the charges.

The EU executive in mid-2007 publicly alleged three kinds of violations by Intel, including providing CPU chips to strategic customers such as governments and educational institutions below cost.

Intel has said repeatedly that it did nothing wrong.

In June, South Korean authorities fined Intel about $26 million, finding it had offered rebates to South Korean PC makers including Samsung Electronics and Trigem Computer in return for not buying AMD microprocessors.

One day after the South Korean finding, the U.S. Federal Trade Commission launched its own formal probe.

The state of New York is also investigating Intel.

In Japan, the Fair Trade Commission concluded in 2005 that Intel had violated that country's Antimonopoly Act. Intel disagreed with the findings but accepted the commission's recommendation, a move that allowed it to avoid a trial.

Story Copyright © 2008 Reuters Limited. All rights reserved.

SponsoredWhite Papers, Webcasts, and Downloads

  • Talkback
  • Most Recent of 29 Talkback(s)
...
Good question! (Read the rest)
Posted by: snowfreeze@... Posted on: 07/24/08 You are currently: a Guest | | Terms of Use
Great news!!! We need competition on the merits for x86 processors.  DonnieBoy | 07/17/08
Same old cat fight  LBiege | 07/17/08
I guess you didn't bother reading...  zkiwi | 07/17/08
Right, if Intel were so good, why do they need to pay OEM to keep AMD out??  DonnieBoy | 07/17/08
It's called killer instinct  LBiege | 07/17/08
So, legality means nothing to you? (nt)  zkiwi | 07/17/08
It's like playing baseball  LBiege | 07/17/08
Yes, for Intel it IS a game. They do not take the legal stuff seriously at  DonnieBoy | 07/17/08
Only if...  zkiwi | 07/22/08
...  snowfreeze@... | 07/24/08
Yes it is but in reverse now....  dunn@... | 07/21/08
wtf?  snowfreeze@... | 07/24/08
I suppose, but, now AMD can file suit in Europe and probably recoup all  DonnieBoy | 07/17/08
Sorry, that was a reply to ruiatcal@. Being able to edit is good, but we  DonnieBoy | 07/17/08
RE: We don't want another MS  [GZ] | 07/18/08
EU won that one those VIA people must be drinkin American Vodka.  rtirman37@... | 07/18/08
RE: EU files new charges against Intel  stdo57@... | 07/18/08
All is not black and white  sanscartier@... | 07/18/08
Finally an intelligent post  LBiege | 07/18/08
Hypocrisy?  jsargent | 07/21/08
The last country -  softwareFlunky | 07/18/08
The US is a SCAM  xKryptx | 07/19/08
RE: EU files new charges against Intel  boogie2277@... | 07/19/08
EU files new charges against Intel  lvr181 | 07/19/08
Wrong ...  thx-1138_@... | 07/19/08
RE: EU trying to crush the dollar  tony@... | 07/21/08
hmmm...  thx-1138_@... | 07/21/08
RE: EU files new charges against Intel  biglips | 07/22/08
Re  biglips | 07/22/08

What do you think?

Click Here
advertisement

White Papers, Webcasts, and Downloads

SmartPlanet

  • Thought-provoking progressive ideas on diverse topics that intersect with technology, business, and life, and matter to the world at large. Visit SmartPlanet
  • More from IBM
  • Innovate your business' process model, play against the market, compete against others on our scoreboards and WIN! Try INNOV8 2.0: A BPM Simulator
  • Enabling Real-World Business Transformation through IBM Service Management Read the EMA Analyst Report
Click Here