The European Commission said it has sent a statement of objections to Intel (NASDAQ:INTC) Corp for alleged market dominance over its rival Advanced Micro Devices Inc (AMD) in the computer processing units (CPU) sector.
The Commission believes that Intel provided substantial rebates to various original equipment manufacturers (OEMs) on the condition that they obtain all or the great majority of their CPU requirements from Intel.
It also claims Intel made payments to induce an OEM to either delay or cancel the launch of a product line incorporating an AMD-based (NYSE:AMD) CPU.
In addition, the Commission believes Intel offered CPUs at a below-average cost.
'These three types of conduct are aimed at excluding AMD, Intel's main rival, from the market. Each of them is provisionally considered to constitute an abuse of a dominant position in its own right. However, the Commission also considers at this stage of its analysis that the three types of conduct reinforce each other and are part of a single overall anti-competitive strategy,' the EU executive said in a statement.
Intel has 10 weeks to reply to the charges and will then have a right to be heard in an oral hearing. If the charges are confirmed, the Commission may impose a fine.
source:money.cnn.com
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