LONDON (Thomson Financial) - European regulators are preparing to file new
antitrust charges against Intel Corp., expanding a probe into the U.S. chip
maker's marketing and sales practices, according to people familiar with the
matter, reported the Wall Street Journal.
The new charges, which could be brought as soon as Thursday, would allege
that Intel gave major European retailers inducements not to sell computers that
use chips from smaller rival Advanced Micro Devices Inc., these people said.
The European Commission, the European Union's executive arm, has been
scrutinizing Intel for nearly eight years in one of the most complex antitrust
cases on its docket, the report said.
Last year, the EU filed charges alleging that Intel used rebates, marketing
payments and below-cost sales to computer makers to discourage them from using
AMD chips in personal computers and low-cost servers.
Intel sells more than 75% of the ubiquitous x86 chips used in such machines.
Under EU rules, companies that hold such dominant market positions have a
special obligation to avoid obstructing competitors.
"We are continuing to cooperate and really don't know what the commission
will do," said Intel spokesman Chuck Mulloy, when asked about the possibility of
new charges. "We believe we operate within the law."
A spokesman for EU Antitrust Commissioner Neelie Kroes said the Intel probe
is "ongoing."
Intel already has responded to the first set of antitrust charges and in
March pleaded its case in a closed-door hearing. "We made what we believe to be
a compelling argument," said Mulloy.
Any evidence that Intel sought to keep AMD's chips out of stores could
bolster the EU's case by giving regulators a way to show Intel's alleged conduct
hurt consumers. Intel has long claimed that discounts it offers manufacturers
are good for consumers because they hold down computer prices.
If it finds Intel broke the law, the EU would issue a formal decision that
lays out the charges against the company publicly a nd demands remedies or
fines.
The EU's probe of possible retail abuses began in 2006, when AMD complained
to German authorities that Intel and Metro AG kept AMD's chips out of Metro's
Media Markt stores. In February, EU investigators raided German offices of Intel
and several computer retailers, including Metro.
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