Intel An Antitrust Violator?

July 27, 2007 | by Christopher Nickson

The European Union has filed antitrust charges against Intel following a six-year investigation begun with a complaint from AMD.

The European Union’s antitrust legislator has brought charges against chip maker Intel, accusing it of using illegal rebates in its business fight with Advanced Micro Devices.
 
The charges were given to Intel yesterday, following a six-year investigation that began with a complaint from A.M.D. For most of the time the market was hugely dominated by Intel, which enjoyed an 80% share. However, Advanced Micro Devices struck back last year, introducing new chips that drew custom away from Intel.
 
Intel now has two months to respond to the charges, and can appeal any final decision in court. The biggest penalty that can be imposed for breaking antitrust laws in Europe is that a company can be fined 10% of its annual sales.
 
Neither company was willing to comment on the charges. But in a suit filed in 2005 in Delaware, A.M.D. accused Intel of “engaging in a relentless, worldwide campaign to coerce customers to refrain from dealing with A.M.D.”

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