European Union officials raid Intel

[Schadenfroh]

Text

BRUSSELS (Reuters) - U.S. computer chip maker Intel Corp., computer makers and distributors were raided by European Commission and local authorities on Tuesday as part of an investigation into possible antitrust violations, a spokesman for the European Union executive said.

The Commission's escalation came as Intel's smaller rival, Advanced Micro Devices, was trying to ratchet up pressure on the chip maker, which has 90 percent of world sales of microprocessors for personal computers that run Microsoft Windows and Linux.

"(EU) competition officials, accompanied by officials from national competition authorities, are conducting inspections of several premises of Intel Corp. in Europe as well as a number of IT firms manufacturing or selling computers," Commission spokesman Jonathan Todd said.

"The investigations are being carried out within the framework of an ongoing competition case," he added.

Intel confirmed the raids and said that it was cooperating fully with the Commission.

"As is our normal practice, we are fully cooperating with authorities from the EU. Beyond that, we can't comment on the specifics of the searches but we believe our business practices are both fair and lawful," said spokesman Chuck Malloy at the company's Santa Clara, California, headquarters.

Sources familiar with the situation said that the raids included Intel's installations in Swindon, England, and in Munich.

Japan has also acted against Intel, but U.S. authorities have expressed little interest in becoming involved. Antitrust authorities in the United States have said that abuse of dominance or monopolization cases are their lowest priority, after cartels and mergers.

The Commission had let a probe it began four years ago go dormant until AMD offered new information more than a year ago.

AMD PRAISES RAIDS

A spokesman for AMD's European operations reacted positively to news of Tuesday's raids.

"We welcome today's dawn raid concerning Intel's continuing infringement of European competition rules. AMD has worked with the EU Commission for years and submitted growing evidence of Intel's illegal activities, including materials from third parties," the spokesman said.

The raids in Europe are only one of the fronts on which Intel is facing pressure.

AMD has argued to competition authorities around the world, and recently filed lawsuits, alleging that Intel maintains a 90 percent market share by income and 78 percent market share by volume by violating antitrust laws.

AMD filed a triple-damages antitrust lawsuit in the United States earlier this month, alleging that Intel had used threats and kickbacks in illegally building the world's top computer chip business.

AMD argues that Intel coerced 38 companies, including Dell Inc. and Sony Corp..

Last month, AMD filed two suits against Intel in Japan, seeking $55 million in damages from the world's largest chip maker for alleged violations of the country's antitrust laws.

In March, Japan's Fair Trade Commission (FTC) found that Intel had violated antitrust laws by offering rebates to five PC makers that agreed either not to buy or to limit their purchases of chips made by AMD or other rivals.

The five computer makers were Hitachi Ltd., Sony, NEC Corp. , Fujitsu Ltd. and Toshiba Corp..

Intel's shares were down 0.5 percent at $27.55 by 1430 GMT.

 

[NakaNaka]

I'd like to see some evidence of this. Intel has a good lead on market share but I don't know of anything unfair that they've done. AMD has pretty good penetration in the market. Being better doesn't mean anti-trust. So let's see what the Europeans come up with.

 

[dug777]

Intel Coercing Dell...?

seems like it would be the other way round

 

[jpeyton]

Originally posted by: dug777
Intel Coercing Dell...?

seems like it would be the other way round

Not really. Intel exclusivity in Dells lineup buys them deep volume discounts. Not unlike what Intel and Apple will be doing with their partnership.

 

[Aharami]

"but we believe our business practices are both fair and lawful"

my ass. AMD's chips are superior by far. There is no lawful reason why intel still maintains such a large market share even with their inferior products

 

[Schadenfroh]

Originally posted by: Aharami

"but we believe our business practices are both fair and lawful"

my ass. AMD's chips are superior by far. There is no lawful reason why intel still maintains such a large market share even with their inferior products

Ever heard of marketing, Aharami?

 

[dug777]

Originally posted by: Schadenfroh

Originally posted by: Aharami

"but we believe our business practices are both fair and lawful"

my ass. AMD's chips are superior by far. There is no lawful reason why intel still maintains such a large market share even with their inferior products

Ever heard of marketing, Aharami?

:laugh:

pwned

 

[ElFenix]

depending on how those volume discounts happen there might be an competition violation. the discounts have to be related to sheer volume, if they are not (such as, requring exclusivity, and the discount doesn't get applied if it isn't exclusive) then it's a violation. intel is probably f-ed in europe. doesn't hurt that amd is a homer in europe (2 factories in dresden, does intel have any factories in the EU?)