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Intel announces plans to appeal European Commission abuse-of-dominance decision

On 13th May 2009 the European Commission announced its decision that Intel has violated Article 82 of the EC Treaty by abusing its dominant position in the market for x86 central processing unit (CPU) computer chips. Intel, which was advised by CRA throughout the Commission's investigation, has announced that it plans to appeal the decision.

The Intel decision is the first Article 82 matter to be decided since the Commission issued its Guidance on Article 82 Enforcement Priorities last December. The Commission found that Intel had given hidden rebates to computer manufacturers on the condition that they bought all, or almost all, of their x86 CPUs from Intel; it also found that Intel had made direct payments to a retailer conditional on it stocking only computers with Intel x86 CPUs. In addition, Intel has been found to have made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors' x86 CPUs and to limit the sales channels available to these products. Intel admits that it offered discounts but denies that it sold its products at below cost.

CRA's team was led by John Hayes and Bharati Mandapati of CRA's Oakland, California office.

See Commission press release and Intel press release for further details.

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