Intel has been accused of abusing its power to erode the rival chipmaker AMD. Till the end of the second quarter, AMD had 11.4% of market share against Intel, which dominates the rest of the share.
It is not for the first time that EU Commission has charged Intel with such charges. For the past six years, AMD has been pleading time to time for European Union to take action against rival Intel for alleged abuse of its market dominance.
Finally yesterday, the EU Commission, accepting the complain, filed a case against Intel, in which the AMD complained that their rival has offended market laws and practiced illegal business practices.
Statement containing objections reveals the abuse of power in three ways, according to Commission: offering rebates to the PC manufacturers, by making payments to some manufacturers to delay or cancel products using AMD processors and selling processors below cost to erode down the rival.
Intel has 10 weeks to present their evidences against the allegations framed and can request an oral hearing. If charges are found justified, a fine up to 10 percent of the annual turnover can be charged.
However, in a response, that seems cool, Intel general council said, ‘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, Bruce Sewell said in a statement.’
Intel officials further assured the EU Commission that discounts are meant to help the customers so they could access their product easily and has nothing to do with their rival AMD. Swell stressed that these charges are just based on complain filed by their direct rival and so far there is no complaint from the consumers or PC users.
EU Commission spokesperson, Ton Van Lieron, confirmed the delivery of statement of allegations and emphasized the need of action against such violation of antitrust regulations, which are necessary to create a fair completion in the market.
In a similar case, EU had asked Microsoft to deposit a huge fine of $683 million in 2004, for abusing its dominant position in PC operating system, which was challenged by the company in the court.
However, it is sure that customers may feel some comfort at lowered prices but such steps can wash a competitor completely, leaving no choice for customers other than using just one kind of product.
EU commission seeks it necessary to look into the matter as it has been a matter of conflict for the last six years starting with similar complain filed by AMD in 2001.
Image Credit: ALAIDE
Via: USAToday
