The European Commission is charging Intel with three anti-trust offences and has given the company ten weeks to respond. Following an oral hearing, a fine could be imposed on the company.
The EC's charges, called a 'statement of objections', related to abuse of a dominant market position under EU anti-trust law. The allegations are:
- First that Intel sold PC processors to strategic customers at below cost in order to exclude AMD from getting those orders.
- Second, that Intel gave 'substantial rebates' to customers who ordered all or most of their PC processors from Intel.
- Third, that Intel paid customers to try to make them delay or cancel the launch of products including AMD-based chips.
Collectively, these three courses of action by Intel add up to anti-competitive practices, alleges the EC.
"A Statement of Objections contains only preliminary allegations and does not itself amount to a finding that there has been a violation of European Union law", said a statement issued by Bruce Sewell, senior vice president and general counsel of Intel, "Intel will now be given the chance to respond directly to the Commission's concerns as part of the administrative process."
The EC's competition directorate has been investigating Intel for some years. It has acted strongly against Microsoft in the past for abuse of its dominant market position and has forced it to unbundled some features from its operating systems and has imposed substantial fines.
Now, it seems, the other leg of the Wintel PC hegemony is about to feel the lash of the EC's anti-trust ire.