Germany and Italy are under a formal European Commission probe for tenders favouring computers with Intel chips, excluding competition by rival Advanced Micro Devices (AMD), a spokesman for the EU executive has said.

Austria, Belgium, Finland, France, the Netherlands, Sweden and non-EU member Norway are also being looked at for requiring "Intel inside", in violation of European Union law.

"Italy and Germany are subject to formal infringement procedures and we are investigating the other countries," Commission spokesman Mr Jonathan Todd said. Governments may be paying far too much for computers because thousands of tenders across the EU specify Intel chips by name or more indirectly, he added. Intel is the world's largest chip maker.

Taxpayers stand to save about 30 per cent on procurements when open and competitive bidding is used, according to a study by the Commission earlier this year.

AMD complained to the Commission because EU law generally prohibits the use of proprietary standards for public procurement.

The European Commission action is unrelated to a fight between Intel and AMD before the US Supreme Court this week.

AMD argued it should gain access to legal documents about its larger rival to give to the European Commission in an anti-trust case. AMD says Intel takes steps to penalise computer makers that promote AMD products and is seeking proof of its assertions.

Japanese authorities raided Intel on April 8th, but its chief executive officer said this week he did not know why.

AMD is based in California, but manufactures its microprocessor wafers - accounting for 90 per cent of chip value - in Dresden, Germany, where it employs 2,000 people. It is building a second plant there.

Intel manufactures its chips for the European market at its Leixlip plant in Co Kildare. - (Reuters)