Intel Denies Accusations of Illegal Business Practices
Intel Corp. was rather quick to respond to allegations of European Commission. which accused the world’s largest maker of x86 central processing units (CPUs) of illegal business practices which ultimate goal was to exclude Advanced Micro Devices from the market of x86 chips. The company said that all allegations were unfounded and that the market was still highly competitive.
“We’re naturally disappointed the Commission has decided to issue a new statement of objections (SO). The issuance of a second SO suggests that the Commission supports AMD’s position that Intel should be prevented from competing fairly and offering price discounts which have resulted in lower prices for consumers,” a statement by Intel reads.
The European Commission said in its supplementary statement of objections (SSO) that Intel provided discounts or rebates to companies who sold its products almost exclusively or delayed/cancelled AMD-based computers. In addition, the EC accused Intel of selling its chips below average price in order not to let its Sunnyvale, California-based rival to win certain strategic contracts.
“We will evaluate this newest SO and respond fully, but it’s clear that the allegations stem from the same set of complaints that our competitor, AMD, has been making to regulators and courts around the world for more than 10 years,” the statement of Intel continues.
According to EC, business practices of the world’s most influential developer of microprocessors have led to virtual monopolization of the EU CPU market by Intel. But Intel strongly disagrees and claims that the market of microprocessors is functioning without issues.
“We are confident that the worldwide microprocessor market is functioning normally and is highly competitive in Europe and elsewhere. Intel’s conduct has always been lawful, pro-competitive and beneficial to consumers,” Intel said.
Intel claims that constant increase of CPU performance and decreasing prices show more than anything else that the market is healthy enough.
“As evidence of the existence of a highly competitive and innovative microprocessor market, consumers have benefited from prices that have gone down significantly, output has increased many times over, and the performance of products, including ours, has improved exponentially,” Intel stated.