The New York Times and The Wall Street Journal are both reporting this morning that officials of the European Commission stated this morning they may be ready to pursue antitrust charges against Intel, based on information they've acquired regarding possible company misconduct in relation to the German retail electronics market.
Last month, the EC assumed control of a German government investigation into allegations that Intel used its influence -- and perhaps some financial incentive -- to compel an electronics retailer there, Media Markt, to sell Intel-based products exclusively through its chain of 400 stores throughout Europe. AMD officials had made such allegations public as early as June 2005, when that company first filed an antitrust suit in the US against Intel.
One month after those allegations were made, EC officials conducted unprecedented raids of Intel's offices throughout Europe, acquiring evidence they said was critical to an ongoing investigation.
Intel has maintained its conduct in German markets and elsewhere has been lawful, and repeated those assurances this morning.
Under EU law, regulators would formally present their charges to the Commissioner for Competition, Neelie Kroes. At that time, Intel would be given up to two months to present a written response. After evaluating both sides, Commissioner Kroes could then decide to draft a so-called "Statement of Objections," similar to what Microsoft received from the EC last year.
While Kroes may have until the end of the year to take action, AMD executive vice president for legal affairs Tom McCoy told the Times he believes she would be inclined to act promptly, given the fact that both AMD and Intel are large employers in Europe, and thus their size could conceivably equalize their political influence. Whether McCoy's comments could actually work against his company's own arguments, remains to be seen.
Part of the basis against AMD's antitrust claims in the United States centers upon Intel's alleged misconduct with regard to its Japanese subsidiary. A federal judge ruled last week that, since that alleged misconduct did not directly involve import business, it fell outside the narrow exceptions allowed by the Sherman Antitrust Act.
Misconduct in Germany or elsewhere in Europe was not part of AMD's U.S. claim, so a decision in the EU would most likely not have a direct affect on the outcome of the U.S. trial.