NEWS | Wednesday, 13 February 2008

EU Commission orders raid on Intel offices

Accused of abuse of their market position and of making cash payments to its customers, Intel is in full co-operation with EU Antitrust officials after its Munich offices were raided this week.
The chip makers will be facing a closed-door court hearing in mid-March, for allegedly selling its products below cost price, as well as offering rebates once Intel products are chosen over those of its main competitor Advanced Micro Devices (AMD).
The investigation started last Summer, after AMD filed a complaint claiming that Intel encouraged customers to delay or cancel purchases of products containing AMD technology. It also transpired that Intel may have sold its products below cost price in an effort to push AMD out of the market.
While spokesperson for the EU commission Jonathan Todd says there is reason to believe that the chipmaker, which he has not named, has breached EU laws protecting fair competition, Intel insists that it is confident that its actions fell within the parameters of law. If in March regulators prove to the European courts that the firm dealt unlawfully, Intel may be fined up to 10 percent of its annual turnover.
German retailers Media Markt, who exclusively trade hardware using Intel technology, are also under investigation in connection to the case.