Japan, Europe Investigate Intel Policies

Intel's policy of offering rebates to PC manufacturers that agree to limit the use of their own processors in exchange for rebates is under investigation by Japan's Fair Trade Commission and the EU.

The European Union Commission is coordinating its investigation of Intel for alleged antitrust violations with Japans Fair Trade Commission (JFTC).

The Japanese inquiry stems from Intels policy of offering rebates to PC manufacturers that agree to limit the use of their own microprocessors in exchange for rebates. EU spokesperson Jonathan Todd said that the Commission was undertaking a similar investigation of Intels business practices.

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Specifically, the JFTC found that one OEM was coerced into agreeing to purchase all of its CPUs from Intel, while another was mandated with an Intel-imposed quota of 10 percent non-Intel purchases.

Other findings concluded that Intel began to use its "Intel Inside" program and market development funds to limit computers to exclusively carry its processors after rival Advanced Micro Devices (AMD) began to grow its market share in 2000 to 2002. Transmeta was also said to be a target of Intels.

"The JFTC found that Intel illegally manipulated the market to exclude competition, hurting PC users around the world," AMD Executive Vice President legal affairs and chief administrative officer Thomas M. McCoy said in response to the JFTC report.

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