Intel, the world's largest chip maker, faces further investigation by the European Union's competition watchdog over allegations that it has used its financial resources and market power to shut out competitors.
The European Commission said yesterday that it had revived an investigation previously signalled as over by Mr Mario Monti, competition Commissioner.
Mr Monti's spokeswoman said the inquiry was at "a new fact-finding phase", but Brussels had not reached a conclusion. Formal antitrust charges could lead to disciplinary action and a fine.
The Commission last month formally requested information about Intel's conduct from several computer industry companies.
Intel said: "We believe that our business practices are fair and lawful. We have been working with the European Commission in the past and will continue to do so."
The company produces about 80 per cent of the microprocessors used in computers.
The investigation is likely to focus on issues that US antitrust regulators have moved away from, such as the use of rebates to shut out competitors.
The European case was originally triggered by a 2000 complaint by Intel's rival, AMD, which said Intel used its deep pockets to fend off competition.
But at a 2002 press conference in Washington, DC, Mr Monti said he had uncovered no evidence to support claims that Intel abused a dominant position.
Nevertheless, AMD has persevered with its case and has even gone to the US Supreme Court in an attempt to force its rival to disclose further information to the Commission.
Faced with a choice between formally rejecting AMD's complaint and continuing with the investigation, the Commission has now reactivated the inquiry.
AMD said: "We're very happy that the Commission has taken a renewed interest in Intel's market practice. We suspect this will bring to light what we have experienced for years - that Intel is acting as a monopolist power."
AMD has also played an important part in a separate Commission action against EU governments for illegally specifying Intel in public procurement projects or using technical specifications that correspond to Intel.
Sweden and France have satisfied Brussels' concerns by forbidding national and local administrations from continuing such practices. The Commission has given Germany until the end of this month to reply to its allegations, and discussions continue with Italy. Intel is not a defendant in the procurement case.
- (Financial Times Service)
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