Reports: Intel To Be Fined In EU Antitrust Case

Intel is set to be fined by the European Commission next Thursday and restricted in its partner rebate practices as an eight-year European antitrust investigation culminates in a major EC ruling, according to a growing number of media reports.

The EC will issue its ruling during the weekly meeting of the European Union executive on May 13, Reuters reported Thursday. The commission will rule that Santa Clara, Calif.-based Intel "breached antitrust rules and will fine it and order changes to how it provides rebates," according to Reuters.

An April Bloomberg report, which also claims that the EC will rule against Intel, describes a "ban" on Intel's partner rebates but does not elaborate.

The size of the fine that the commission will reportedly levy against Intel next week has not been reported. Earlier reports indicate that the maximum fine possible would be equivalent to 10 percent of Intel's annual revenue, which was $37.6 billion in 2008.

Intel has been under investigation by EU antitrust regulators since a 2001 complaint by Advanced Micro Devices, Intel's main rival in the x86 microprocessor market. The crux of the investigation has focused on accusations that Intel violated anticompetition rules by pressuring computer retailers not to sell AMD-based computers via retroactive rebates, with formal charges brought against Intel by the EU executive in 2007. AMD filed additional charges in 2008, claiming that Intel made outright payments to retailers to lock out AMD products.

The EC, which last February conducted dawn raids on Intel's offices in Germany and additional raids on the offices of Intel retail partners, has prepared a 500-page report on its findings against Intel, according to Bloomberg. The draft report has been shared with antitrust authorities in 27 EU countries, according to Bloomberg, which cites anonymous sources who have seen the document.

Intel legal spokesman Chuck Mulloy declined to comment Thursday on reports of an imminent EU ruling in the chip maker's antitrust case.

"Our policy is not to comment on rumors and speculations. We are not part of that process, so we have no comment," Mulloy said.

A spokesperson for Sunnyvale, Calif.-based AMD said "we won't speculate" on the ongoing EC investigation.

While mainstream reports were sparse in their details of what the EC's ruling might look like, a subscription-only assessment from the European market analysis firm MLex offered more color.

Next: More Details On Possible Fine Against Intel