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Intel to launch defence in EU antitrust case
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  • BRUSSELS, March 10 (AFP) Mar 10, 2008
    Intel gets its chance on Tuesday and Wednesday to fend off the threat of hefty EU antitrust fines when it fights regulators' charges that the microchip giant has abused its dominant market power.

    The Santa Clara, California-based company has two days to fight the charges when it faces regulators in closed-door oral hearings at the European Commission in Brussels.

    "We hope to convince the commission that the microprocessor market is competitive and is behaving as one would expect a competitive market to behave to the benefit of consumers," spokesman Chuck Mulloy told AFP.

    "We believe our business practices are lawful," he added.

    After a six-year investigation, the commission accused Intel in July of offering "substantial" rebates to computer makers that mostly used its chips.

    Europe's top competition watchdog also alleged that Intel had made payments to clients to delay or cancel products using chips made by its US rival Advanced Micro Device, and selling its own chips at below cost in some cases.

    If Intel is unable to sway regulators, then the commission can order the company to change its business strategy and slap huge fines on it.

    Last month, EU regulators widened their antitrust case against Intel by raiding its German offices and major computer retailers in Britain, France and Germany looking for further evidence that the company had abused its dominant market share.

    AMD, the second biggest computer chip maker, has long accused Intel of using its grip on the market for microchips -- the brains of personal computers -- to choke off competition.

    Intel held an 80 percent share of the market in 2006 and AMD controlled about 17 percent.

    A commission spokeswoman declined to comment on the case other than "the investigation is on-going" and that it would "rely on the hearings."




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