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Intel Responds to European Charges in Antitrust Case (Update2)

By Matthew Newman

Feb. 23 (Bloomberg) -- Intel Corp., the world’s biggest computer-chip maker, responded to European Union charges regarding a probe into allegations that it used discounts to retailers to thwart competition.

Intel submitted a response to official charges -- known as a statement of objections -- on Feb. 5, the company said in a U.S. regulatory filing today. A European court last month rejected Intel’s request to halt the investigation by the European Commission, the EU’s antitrust authority in Brussels.

Intel has been entangled in a dispute with EU antitrust regulators since 2001, following a complaint by rival Advanced Micro Devices Inc. The commission accused Intel last July of giving computer sellers “substantial rebates” not to sell machines using AMD chips.

Intel spokesman Robert Manetta had no additional comment about the confidential filing. AMD spokesman Jens Drews had no comment.

The commission said in an e-mailed statement that Intel’s response came after an Oct. 17 deadline and it rejected the Santa Clara, California-based company’s request for an oral hearing.

The commission will “nevertheless assess whether the information submitted on 5 February 2009 is necessary to properly conduct the administrative procedure in this antitrust case.”

Companies have two months to respond to charges and can ask for extensions. They can also request oral hearings, which are closed to the public.

Second Time

The July charges marked the second time that Intel faced European allegations that it broke antitrust laws. In 2007, the EU regulator accused the company of giving illegal rebates to customers to wrest sales away from AMD.

Intel said in the regulatory filing that the commission sent the company an additional set of evidence related to the 2007 charges. This “letter of fact” was sent to Intel as a “courtesy,” Intel said.

In its letter, the commission said it couldn’t exclude the possibility of taking a decision “adverse to Intel,” according to the chipmaker.

“The European Commission’s letter outlined certain alleged evidence that the European Commission may rely on in reaching any such decision,” Intel said in the filing.

Under EU rules, companies can be fined as much as 10 percent of sales for antitrust violations.

To contact the reporter on this story: Matthew Newman in Brussels at Mnewman6@bloomberg.net

Last Updated: February 23, 2009 12:44 EST

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