Advanced Micro Devices Inc (AMD)

[dhellman]

Reuters
EU Renews Probe of Intel, Sources Say
Tuesday June 8, 5:36 am ET
By David Lawsky
http://biz.yahoo.com/rb/040608/tech_intel_eu_1.html

BRUSSELS (Reuters) - The European Commission has rekindled a three-year-old investigation into Intel (NasdaqNM:INTC - News), asking new questions about the chip producer's business practices, sources close to the situation said on Tuesday.

The Intel case has been dormant for years, but last month the Commission sent detailed letters of inquiry to computer makers and retailers, the sources told Reuters.

A Commission spokeswoman had no immediate comment.

In 2001, the Commission said it had looked into allegations Intel "abused its dominant position in the market for Windows-capable microprocessors by engaging in abusive marketing practices."

At that time, it also sent information requests to makers of personal computers and retailers.

Sources said that the renewal of the probe by the Commission was prompted by the fact that the EU executive had got additional information from complainants.

A spokesman for Intel said that the company continued to cooperate fully, as it has for the past three years.

"We believe and have said many times that our business practices are both lawful and fair. We can't comment on any specific allegations or questions from the Commission," said spokesman Chuck Mulloy, speaking by telephone from California.

A spokesman for AMD (NYSE:AMD - News), Intel's smaller rival, had a cautious reaction to the news. "We welcome any development that will promote competition in the European computer industry," said Jen Drews.

The probe is being handled by the same European Commission team which investigated the Microsoft case, leading to a record 497 million euro fine and orders to change the firm's business practices. Microsoft will appeal this week.

The European Commission earlier this year said it was investigating the governments of France, Germany and others for favoring Intel chips in public tenders.



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