EC raids Intel offices in Munich for alleged anti-competitive actions

Mumbai: European Commission today raided the Munich offices of chip giant Intel as part of an ongoing antitrust investigation. The raids followed allegations by rival chipmaker AMD that Intel paid German retail chain Media Markt not to stock PCs containing AMD processors.

EC investigators searched offices of German consumer electronics vendor Media Markt and DSG International, which runs retail electronics chain Dixons in the UK, blog reports said.

The initial findings of a probe by the Commission unveiled last summer concluded that the chip firm engaged in anti-competitive action to thwart AMD.

AMD accused the world's largest chipmaker of giving rebates to customers provided they bought Intel products and offering incentives to companies to delay or cancel products containing AMD technology.

Intel faces a closed hearing in Brussels on 11 and 12 March on the charges.

European regulators have the power to fine Intel up to 10 per cent of annual turnover if they find it guilty of stifling competition.

Intel has been accused of trying to abuse its dominant market position by selling its products below cost price and making cash payments to customers.

The European Commission has yet to name Intel, but confirmed that officials had carried out "unannounced inspections" at the premises of a chipmaker.

Commission spokesman Jonathan Todd said it had reason to believe the firm in question had violated European laws on restrictive business practices.