EU regulator raids Intel offices

[gkd_uk]

Intel, the world's biggest computer chipmaker, has been raided by European Union competition regulators amid claims it abused its market position.
Chuck Mulloy, a spokesman for Intel, said the regulators raided the company's office in Munich, Germany.

Mr Mulloy said Intel was co-operating with the investigators.

Intel has been accused of trying to abuse its dominant market position by selling its products below cost price and making cash payments to customers.

"I can confirm that there has been a raid on our offices in Munich," Mr Mulloy said.

"As is our normal practice, we are co-operating with authorities," he added.

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[SkinnerW]

I am just curious... How do you benefit from selling your product below cost?

I understand if you are retailer and trying to get rid of the stock, but manufacturer. Unless there is a clause in the contract that after first cheap shipment buyer will have to pay regular price for the following orders - you can not create monopoly by going broke...

 

[smeagain]

Very old tactic used to kill the competition and increase monopoly position.