Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (67217)	4/6/2001 3:25:11 PM
From: Rarebird	Respond to of 116790

Intel faces EC antitrust probe Friday, April 06, 2001 01:58 PM EDT WASHINGTON, Apr 06, 2001 (United Press International via COMTEX) -- European investigators launched an anti-trust investigation against chip giant Intel Corp., the European Commission said Friday. The EC is examining the way Intel licenses the design of the "bus" connections that link chips with other computer components, Intel spokesman Chuck Mulloy said. Intel helps pay for PC makers' advertisements as long as they carry the Intel logo or play its proprietary four-note jingle. The program works with 1,500 PC makers worldwide and 800 in Europe, a statement from Intel said. About $4 billion in advertising has carried the logo. The company also runs its own advertisements, the first Intel television ad ran in London in November 1999. However, most of the marketing is done by displaying its logo or on PC makers' ads. "There is nothing wrong with loyalty rebates if they're granted by a company not in dominant position," EC spokeswoman Amelia Torres said. "Intel is in a dominant position so it must make sure that what it's doing is not intended to run smaller companies out of business." Earlier, newspaper reports said that the EC was concerned that advertising methods such as the "Intel Inside" marketing subsidies may discriminate against rivals, said lawyers close to the case. Intel controls 84 percent of the market in Europe, where it received one-fourth of its $34 billion in sales for 2000. However, Intel's main competitor, Advanced Micro Devices Inc, has increasingly been gaining market share there, an analyst with Gartner Dataquest, a service that tracks technology, said. The volume of PCs with AMD's processors grew 37 percent in the fourth quarter of 2000, while Intel's volumes declined 2.3 percent. AMD's share in the quarter was 14.4 percent. An EC statement said the investigation was at a "very early stage," adding it had not found evidence that Intel broke any European laws. Intel would face a fine as high as 10 percent of sales, if found guilty. The investigative process, via its request for information began several months ago, Mulloy added. "We will work through the process and feel the EU will conclude we are in accordance with fair and lawful practices," Mulloy said. The Intel investigation comes after the Federal Trade Commission closed a three-year case against the company last September. The FTC began investigating whether Intel leveraged its dominance in the market for computer chips to control markets for other components of personal computers. The case, that cost Intel roughly $40 million to defend, was settled and the result was to structure a framework on standards going forward. By RUTH PRINS, UPI Business Correspondent Copyright 2001 by United Press International. News provided by COMTEX comtexnews.com