European Union Versus Intel

Includes: AMD, DELL, HPQ, INTC
by: Evelyn Rubin

Excerpt from our One-Page WSJ Summary:

Intel Could Face EU Antitrust Case

Summary: After a five year probe of a variety of Intel's business practices, people familiar with the case say that the European Commission in Brussels has prepared a draft of charges against the company. The next step in the process is for the commission to present its case to an expert panel to screen the argument for holes, then European antitrust chief Neelie Kroes will examine the evidence and decide whether to charge Intel, probably before the end of the year. Intel would have up to two months to respond to Ms. Kroes' charges, and would be entitled to a hearing. Ms. Kroes could end up fining the company. Thomas McCoy, AMD's (NASDAQ:AMD) VP of Legal Affairs noted that Intel typically uses "false rebates schemes and the threat of price increases" with computer manufacturers. Intel is up against antitrust authorities in South Korea as well, but in the U.S. has not faced an antitrust suit since the '90s,
Related links: Full WSJ articleIntel & AMD: Where the Chips FallIntel vs. AMD: What the Cuts Mean
Potentially impacted stocks and ETFs: AMD (AMD), Dell (DELL), Hewlett-Packard (NYSE:HPQ)

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