EU Takes Next Step in Intel-AMD Case

Jul 29, 2007

According to the International Herald Tribune, "in a case reminiscent of their legal battle with Microsoft, European Union antitrust regulators on Friday accused Intel of abusing its leading position in the market for computer chips to try to drive out competitors." The charges, outlined in the European Commission's statement of objections, claim that Intel used rebates and other incentives to encourage customers to use its chips instead of those made by AMD.

Intel has acknowledged the existence of its discount program, but asserts that it's not anti-competitive. The company, which faces hefty fines if found guilty, now has 10 weeks to formally respond to the Commission's charges.

In describing the Intel-AMD case, the IHT article highlights differences between European and American regulators. Quoting Intel's general counsel Bruce Sewell, the article states, "behavior which constitutes abusive behavior within Europe is less clear than in the U.S. so companies are trying to find the boundary lines." A Brussels-based antitrust lawyer named Dennis Oswell adds, "Companies participating in anti-competitive behavior are looking over their shoulder more in Europe than in the U.S...You definitely have a gap at the moment."

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