The European Commission has rekindled a three-year-old antitrust investigation into Intel, asking new questions about the world's largest chip maker's business practices, the Commission said today.
The probe, touched off by complaints that Intel abused its dominance of the computer chip business, had been dormant for years.
Last month, prompted by new information from Intel rival Advanced Micro Devices, the Commission sent detailed letters of inquiry to computer makers and retailers, sources close to the situation told Reuters.
The Commission confirmed it had revived the investigation.
"It's still at the beginning so I would caution you against rushing to conclusions about whether or not we feel we have a case against Intel," Commission competition spokeswoman Amelia Torres told a news conference in Brussels. "It's fair to characterize it as a new fact finding phase."
A spokesman for Intel, which in April saw its Japanese offices raided by antitrust officials in that country, said the company continued to cooperate fully, as it has for the past three years.
"We believe and have said many times that our business practices are both lawful and fair. We can't comment on any specific allegations or questions from the Commission," said spokesman Mr Chuck Mulloy, speaking by telephone from California.
Intel shares fell 6 cents, or 0.2 per cent, to $28.69 shortly after midday on Nasdaq.
A spokesman for AMD, Intel's smaller rival, reacted cautiously to the news. "We welcome any development that will promote competition in the European computer industry," said Jens Drews. A total of 64 letters requesting information were recently sent to PC makers and retailers by the commission, said AMD spokesman Michael Simonoff.
In 2001, the Commission said it had looked into allegations that Intel abused its dominant position "for Windows-capable microprocessors by engaging in abusive marketing practices."
At that time, it also sent requests for information to makers of personal computers and retailers.
The probe is being handled by the same European Commission team which investigated the Microsoft case, leading to a record 497 million euro ($615 million) fine and orders to change the firm's business practices. Microsoft will appeal this week.
The European Commission earlier this year said it was investigating the governments of France, Germany and others for favoring Intel chips in public tenders.
As recently as last month, Intel's chief executive officer described the EU investigation as "relatively dormant," saying that complaints about its business practices had been brought on by the company's success.
Intel controls about 80 per cent of the market for PC microprocessors, the primary chips that power computers.