Intel responds to EU action

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INTEL HAS MADE A PUBLIC STATEMENT in response to allegations of dodgy, anti-competitive practices made by arch rival AMD.

The allegations sparked a probe into the chip maker's business dealings by EU regulators.

The Statement of Objections (SO) which is the second such edict to be issued by the European Commission, accuses Intel of trying to gain unfair advantage in European markets by offering discounts and other incentives to prevent retailers from stocking AMD products.

Intel said it is "disappointed" the Commission has decided to issue a new SO. It reckons 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."

It claims 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.

"We are confident," it said, "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. 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.

"We are confident that our response will show that the allegations in the SO are unfounded."

The corporation's board of directors yesterday declared a 14 cents per share quarterly dividend on the company's common stock.

We wonder what that dividend might have been if it had to compete with an other half a dozen chip makers around the world, rather than standing astride a market it commands an eighty per cent share of.