updated 09:30 am EDT, Wed July 16, 2008
EU Plans New Intel Charges
The European Commission is planning to file yet more antitrust charges against Intel for its alleged monopolistic behavior, the Wall Street Journal now says (registration required). The extra accusations would specifically focus on claims that Intel provided financial incentives to larger European resellers if they would drop any sales of AMD-based systems, all but pushing the smaller chipmaker out of the markets for most home computers and low-cost servers.
Intel has previously argued to the Commission that its approach to selling processors in Europe is legal, including a reportedly deliberate underpricing of chips to force matching but unsustainable price cuts on AMD. European officials, however, have contended that any dominant company has a legal responsibility to drop these same tactics once they control a clear majority of the market in a given region.
European officials involved in the case have yet to publicly confirm or deny the newspaper's assertions, though it's widely understood that any ruling against Intel is likely to include both punitive fines for past actions as well as requirements that Intel allow PC resllers to carry AMD computers and to do so on fair terms.