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EU expands probe into whether governments illegally favored
Published in Saudi Press Agency on 11 - 10 - 2004


The European Union's head office
Wednesday expanded its probe into whether EU governments
are illegally requiring that the computers they buy must
contain microprocessors made by Intel Corp.
The European Commission sent formal notices to France, the
Netherlands, Finland and Sweden seeking information on
public tenders for computers that either contain Intel
chips or specify a chip speed only the U.S. giant can
provide.
Similar letters were sent this year to Italy and Germany
and their replies are now being evaluated.
The commission said it believes such requirements violate
European law on public procurement.
"You can specify the performance you are looking for in a
particular computer problem, but not a specification that
can only be met by one manufacturer," said commission
spokesman Jonathan Todd.
The commission began investigating after receiving
complaints from Intel's competitors. EU officials would not
name the companies, but Intel's largest rival is Advanced
Micro Devices Inc. Both are based in California and have a
strong presence in Europe.
AMD has accused Intel of unfair sales practices in Europe,
such as offering loyalty rebates to customers and signing
exclusive purchasing agreements.
In June, EU antitrust regulators said they would look into
Intel's business practices again after AMD refused to
withdraw its complaint. The EU had reached a preliminary
conclusion in 2002 that there was insufficient evidence to
bring any charges.
AMD spokesmen in Germany did not immediately respond to
messages left with them. Intel spokesman Kristof Sehmke in
Belgium had no immediate comment.
In the latest probe, EU officials have backed away from
accusing Intel of violating EU competition rules, adding
they did not know why governments put Intel-only clauses in
bid requirements.
--more
1456 Local Time
1156 GMT


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