Europe widens Intel investigation

Intel dominates the market in chips used to run Windows PCs

The European Commission (EC) has widened its anti-competition probe into chipmaker Intel's business practices.

Brussels is now examining claims that the chip-maker tried to convince retail chain Media Markt not to sell PCs using Advanced Micro Devices (AMD) chips.

German watchdogs had been investigating the case before handing it to Brussels.

The allegations will become part of a bigger Europe-wide inquiry into whether Intel abused its monopoly position to supply chips to run Microsoft software.

Regulators in Brussels have been examining the conduct of the world's largest chipmaker since 2001.

Pressure

The latest line of investigation follows allegations from rival AMD that Intel persuaded Media Markt - owned by German retail giant Metro - not to sell machines using its chips.

"The Commission is concerned that Intel has been putting pressure on Media Markt not to stock computers that include AMD chips as opposed to Intel chips," said EU spokesman Jonathan Todd.

Mr Todd declined to say what kind of pressure Intel had exerted on the retailer.

Media Merkt, which has more than 360 stores across Europe, declined to comment on the investigation.

However, California-based Intel said it planned to continue to co-operate with regulators, saying it believed its "businesses practices are both fair and lawful".

"The investigation is more than five years old, so one would expect that as part of it the Commission would look at all aspects of the case," spokesman Chuck Molloy added.

Intel and rival AMD are the two biggest players in the market for microprocessors used to run Windows PCs. Intel dominates the sector, holding approximately 80% of the market.