Intel to Get EU Antitrust Fine

The European Commission on Wednesday will fine the world's biggest computer-chip maker, Intel Corp., for breaking European antitrust rules, people familiar with the matter said Friday.
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The commission, the executive arm of the European Union, will also tell Intel to make changes to the way it provides rebates to computer makers, the people said.

Commission officials spent most of Friday discussing the Intel fine with national competition authorities, which according to EU procedure also have a say on the matter, the people familiar with the case said.

They added that once all the stakeholders have had their say on the fine, the final document will be presented to the college of commissioners Wednesday, which is then likely to adopt it.

An Intel spokesman declined to comment, except to say that word of the pending decision amounts to rumors and speculation. A commission spokesman declined to comment.

Intel's trouble with the commission dates from 2000, when chip-maker Advanced Micro Devices Inc., of Sunnyvale, Calif., filed a complaint saying Intel was blocking its access to the market. In 2007, the EU sent preliminary charges to Intel, alleging Intel kept AMD out of the microprocessor market by paying computer makers rebates to keep their usage of AMD chips down and by selling chips below cost to thwart AMD from swooping on key accounts. Last year, the EU added more charges, alleging Intel paid a major retailer to keep computers that use AMD chips off its shelves.

The commission's decision set for Wednesday is said to be extremely complex and lengthy, in order to safeguard the antitrust enforcer against any possible legal challenges from Intel, which is likely facing one of the highest fines in Europe's antitrust history, according to Brussels-based lawyers.

EU competition commissioner Neelie Kroes can, under commission's rules, fine Intel as much as 10% of its annual revenue, which in 2008 was almost $38 billion. Last year, the commission issued a record $1.16 billion fine against Microsoft Corp. for noncompliance in the EU's long-running antitrust fight with the software giant.

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BY Peppi Kiviniemi
Source：THE WALL STREET JOURNAL

Charles Forelle contributed to this article.

Write to Peppi Kiviniemi at peppi.kiviniemi@dowjones.com

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