E.U. receives Intel's response to antitrust charges

by Paul Meller

January 7, 2008 —

The European Commission confirmed Monday it has received a written response
to the formal antitrust charges it filed against computer chip maker Intel,
after some delays.

"We have received the company's response and are examining it carefully,"
said a person close to the competition department.

In July the Commission accused the world's biggest maker of computer chips
of handing out "substantial rebates" to computer manufacturers in
return for buying the bulk of their x86 chips from Intel.

It also accused the company of paying computer makers for scrapping or delaying
the launch of machines fitted with AMD chips, and of selling its chips for server
computers at below cost to large customers such as governments and universities.

Such practices are illegal under European antitrust law when applied by companies
that dominate their market, as Intel does.

In addition to the written response filed Monday, Intel has also asked the
Commission for the opportunity to respond to the charges face-to-face in an
oral hearing, said Chuck Mulloy, a company spokesman in Santa Clara, California.
The Commission will decide the date's oral hearing.

"It will be a while before the hearing. The Commission staff will have
to read our substantial response," Mulloy said.

Intel asked twice for extra time to prepare the written response. The initial
deadline was in October. That was shifted to Jan. 4. Then, as the new deadline
loomed, Intel asked for the weekend to complete the document.

"There were some loose ends that needed to be addressed. It was nothing
unusual," Mulloy said.

IDG News Service