September 22, 2009

Outlining the evidence that triggered Europe's largest antitrust fine, regulators released emails showing big computer makers worried Intel Corp. would punish them for using chips from a rival.

The European Union levied a record €1.06 billion ($1.56 billion) fine against Intel in May, alleging the computer chip giant abused its dominant position in the microprocessor market. Monday, the EU published a 518-page document that detailed its case.

In emails included in the document, executives from PC makers fretted that Intel would cut lucrative rebates if the PC makers used chips from rival Advanced Micro Devices Inc. in too many computers. In some instances, the emails describe dinners or meetings between Intel executives and manufacturers.

In one email among dozens cited, a Dell Inc. executive worried in February 2004 about the ramifications of giving business to AMD, which had a hot new chip on the market.

"It looks 100% certain that Intel will take [rebates] to ZERO for at least one quarter while they 'review all of the numbers and implications,'" he wrote. Typically, Intel gave customers rebate payments based how much they purchased.

Months before Dell did begin to use AMD chips, a news report appeared saying Dell had "no plans" to do so. "Finally something positive," one Intel senior executive wrote to another. "The best friend money can buy," came the response from another unidentified Intel employee, according to the EU document.

In another email, an executive of China's Lenovo Group Ltd. told colleagues he was negotiating a "special deal" valued at "millions of dollars" in exchange for giving Intel "all business of shipments for the rest of this calendar year."

Source:- http://online.wsj.com