EU Charges Intel With Competition Law Violations

The European Commission (EC) has charged Intel with violating EU competition laws by using bad business practices to undermine rival chipmaker Advanced Micro Devices (AMD). The EC charged that Intel provided rebates to OEMs that agreed to obtain the majority of their CPU chips from Intel, and that Intel made payments have OEMs either delay or cancel the launch of product lines incorporating an AMD-based CPU. Intel also provided discounted CPU chips to strategic customers "in the context of bids against AMD," according to the charges. As Intel defended its business practices, AMD lauded the EC's decision. "Intel has circled the globe with a pattern of conduct, including direct payments, in order to enforce full and partial boycotts of AMD," Thomas M. McCoy, AMD executive vice president legal affairs and chief administrative officer, said in a statement. "The EU action obviously suggests that Intel has, once again, been unable to justify its illegal conduct." The EC has been investigating AMD's complaints against Intel's business behavior since 2001. In 2005, AMD had also filed lawsuits against Intel in Japan and the U.S.