The result of a six year investigation, the European Commission today charged American company Intel with violating EU competition laws.
The world's largest chip-maker is accused of breaking EU rules, excluding competitor AMD from the CPU market and abusing its position.
The European commission states that Intel's wrong-doings fall into three main areas:
-Intel gave conditional refunds to computer makers as long as they agreed to buy most or all of their CPU chips from Intel.
-Intel paid off computer makers to delay or cancel the launch of products using AMD chips
-Intel supplied CPU chips to strategic customers such as governments and educational institutions at cut rate prices
Intel has until 8th October to respond to these sensational claims.
The Commission can fine Intel up to 10% of its annual turnover if its is not satisfied with the company's formal response.
Intel has stated it is "confident" it has done nothing wrong:
"We are confident that the microprocessor market segment is functioning normally and that Intel's conduct has been lawful, pro-competitive, and beneficial to consumers."
AMD has praised the Commission's actions.