EU raids Intel and Currys

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The European Commission has raided offices belonging to chipmaker Intel and major UK PC retailer DSG International, as it steps up the severity of its antitrust investigation into the processor giant.

EU investigators also hit the offices of German technology retailer Media Markt-Saturn.

Intel has been preparing for a Brussels hearing on 11 March to answer pending charges it abused its dominance of the market for central processing units (CPUs) at the heart of every PC.

"Commission officials carried out unannounced inspections at the premises of a manufacturer of central processing units and a number of personal computer retailers," said Jonathan Todd, a Commission spokesman.

He said the Commission, accompanied by local law enforcement staff, conducted the raids because it had reason to believe the companies "may have violated EC (European Community) Treaty rules on restrictive business practices and/or abuse of a dominant market position."

Intel confirmed the raids.

"There has been a raid on our offices in Munich. As is our normal practice, we are cooperating with authorities," said Chuck Mulloy, a spokesman for the chip maker .

In London, retailer DSG, which owns online electronics retail brand Dixons, as well as the Currys and PC World retail stores, said it was part of the sweep as well.

"I can confirm that officials from the EU Commission are currently conducting an inspection at our Retail Support Centre in Hemel Hempstead," a DSG spokesman said in a statement. Germany's Media Markt-Saturn also confirmed it was raided.

The raids come as Intel faces a closed hearing in Brussels next month on charges that it slashed prices below cost and offered huge rebates in an attempt to drive smaller competitor AMD out of the market.

The Commission was already investigating Media Markt-Saturn for its ties to Intel, acting on a reference from the German anti-cartel agency. The retailer sells PCs with Intel CPUs but not those by AMD.

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.

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