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Intel Responds to EU Charges
Says complaints are from AMD, not customers, and the market is doing perfectly fine.
In response to a statement of objections (SO) served by the European Commission yesterday regarding anti-competitive practices, Intel senior vice president and general counsel Bruce Sewell issued the following statement:
"We are confident that the microprocessor market segment is functioning normally and that Intel's conduct has been lawful, pro-competitive, and beneficial to consumers. While we would certainly have preferred to avoid the cost and inconvenience of establishing that our competitive conduct in Europe has been lawful, the Commission's decision to issue a Statement of Objections means that at last Intel will have the opportunity to hear and respond to the allegations made by our primary competitor.
“The case is based on complaints from a direct competitor rather than customers or consumers. The Commission has an obligation to investigate those complaints. However, a Statement of Objections contains only preliminary allegations and does not itself amount to a finding that there has been a violation of European Union law. Intel will now be given the chance to respond directly to the Commission's concerns as part of the administrative process. The evidence that this industry is fiercely competitive and working is compelling. When competitors perform and execute the market rewards them. When they falter and under-perform the market responds accordingly."
According to a 2004 article in BusinessWeek, the European Commission began investigating Intel as early as 2001, although the initial probe was dropped. Things picked up again in 2004, which culminated in a raid of Intel’s European offices in 2005.
AMD hopes the charges filed will benefit consumers. "We are confident that this statement of objections will be a catalyst in opening the global microprocessor markets for the benefit of consumers and PC companies alike,” says AMD EMEA president Giuliano Meroni.
AMD has filed complaints in numerous countries accusing Intel of behavior that has hurt AMD’s ability to compete on a level playing field. A series of documents (PDF) filed in US courts detail numerous accusations, including Intel’s supposed attempts to conditionally offer volume discounts for near-exclusivity, and delaying OEM product launches that contained competing hardware.
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