The European Commission has confirmed that it has levelled formal competition charges against Intel, the world's biggest computer chip maker, on suspicion that it has abused its dominant market position.
The Commission said it had sent a 'statement of objections' - the first formal step towards possible fines - to Intel on July 26 alleging that it had tried to exclude its main rival AMD from the market.
The statement said Intel had provided 'substantial rebates' to various equipment manufacturers which were conditional on their obtaining all or the majority of their chip requirements from Intel.
It also accused Intel of making payments to customers to try to make them delay or cancel the launch of products including AMD-based chips. The Commission also said Intel had offered chips below-cost.
The Commission said that the 'three types of conduct reinforce each other and are part of a single overall anti-competitive strategy'.
It gave Intel 10 weeks to respond, after which time it will have the right to an oral hearing. If its suspicions are confirmed, the Commission could impose a fine.
