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Intel under scrutiny over EU pricing

by on11 March 2009

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Could face massive fine


Intel could
be slammed by a massive fine by EU regulator over charges its pricing policies were aimed to suppress competition in retail channels.

If EU regulators have their way, the company could be forced to pay a fine to the tune of 10 percent of its annual revenue, but more worryingly, they could take action to change Intel's pricing model on the European market.

The European Commission claims Intel's pricing practices, such as rebates given to system integrators and retailers, were aimed at driving AMD out of the market. The charges allege Intel gave rebates to partners under the condition they obtain most CPUs from Intel, and even made payments to system integrators to delay or cancel AMD based products.

Intel denies the charges and claims its actions were lawful, and says it will not speculate on the EC's decision. However, in a filing to US regulators, the chipmaker warned the EC could indeed rule against Intel.

Analysts expect the Commission will rule Intel breached EU antitrust laws and that the company will face a hefty fine, even higher than the one imposed on Microsoft a couple of years back.

More here.
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