Intel to be fined by EU for paying companies not to produce AMD based PCs

On Wednesday this week the European Commission is expected to bring their decision in the case related to anti-competition practices of the largest microprocessor manufacturer Intel Corp. According to the sources familiar with the situation the antitrust regulators are expected to fine Intel for its illegally paying computer makers to postpone or cancel the launch of products containing chips made by its main rival.

The Brussels-based watchdog is said to rule that Intel made two violations of the anti-competition regulations. Intel gave rebates to computer makers so as to restrict or eliminate the use of chips produced by its rival Advanced Micro Devices, and provided other inducements to retailers to sell only machines with Intel CPUs. The sources report that in its ruling the Commission will order Intel to end by a specific date those rebates which it deems to be illegal.

The Commission will characterize the payments as "naked restrictions" to competition, the sources said. The Commission will state that the violations occurred during a period stretching back eight years, they said.

Meantime, Intel said that it has done nothing wrong.