European Commission Raids Intel's Munich Offices

February 12, 2008

Reuters reports this morning that theEuropean Commission has just raided Intel's office in Munich, Germany.

"I can confirm that Commission officials have carried out unannounced inspections at the plants of a manufacturer of central processing units (CPUs)", said Jonathan Todd, a spokesman for the Commission in Brussels.

Without specifically mentioning Intel, Todd told Reuters the raids were conducted because of possible violations of EU rules against restrictive business practices and/or abuse of a dominant position.

Intel has confirmed the raid.

"There has been a raid on our offices in Munich. As is our normal practice, we are cooperating with authorities," said Intel spokesperson Chuck Mulloy,

The raids appear to be undertaken as preperation for a closed hearing before the Commission on March 11 and 12, during which Intel will be called to answer charges that it slashed prices below cost and offered huge rebates in an attempt to drive smaller competitor Advanced Micro Devices.

As Reuters notes, the Commission is the EU's antitrust watchdog and has powers to fine companies up to 10 percent of their global annual revenue for competition abuses.