Investigators probe allegations of ‘strong-arm’ tactics

European antitrust enforcers have opened an investigation of Intel Corp.’s business tactics, taking up an effort the Federal Trade Commission ended last year with no action. THE INVESTIGATION by the European Commission is focused in part on possible exclusionary effects of Intel’s marketing efforts, including the “Intel Inside” marketing subsidies, lawyers close to the case said. These incentives are alleged to have been used to reward computer makers that use Intel chips exclusively, while punishing those companies building personal computers using competitors’ chips. The investigation is examining Intel’s licensing of the design for the internal data pathway, or “bus,” of its chips, the lawyers close to the case said. Investigators also are weighing allegations from competitors that Intel strong-armed customers who bought rival computer chips; such customers were alleged to have been denied crucial design data, and their access to supplies of new Intel chips was limited. In a statement late Thursday, Intel confirmed that it has been asked to provide information to European authorities “regarding Intel’s policies in licensing its bus architectures for Intel microprocessors and our general business practices.” The Santa Clara, Calif., chip maker said it is cooperating with the inquiry but wouldn’t comment further on its specifics. “We believe our business practices are both fair and lawful,” the company’s statement concluded. In the past, Intel has successfully addressed concerns raised by U.S. antitrust enforcers and has repeatedly prevailed in private antitrust suits.