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European regulators will be re-examining allegations by AMD in 2000 that Intel has used its financial and market muscle to prevent AMD from winning contracts. It is expected to ask European OEMs whether they have received any communications from Intel threatening competitive action if they moved to AMD parts. Fujitsu-Siemens has confirmed that it has been contacted in connection with the probe.

AMD is quoted as saying that 'We're very happy that the Commission has taken a renewed interest in Intel's market practice. We suspect this will bring to light what we have experienced for years that

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Intel is acting as a monopolist power.'

Intel, as one might expect, disagrees: 'We believe that our business practices are fair and lawful. We have been working with the European Commission in the past and we will continue to do so,' said an Intel spokesperson.

Intel has around 80 per cent of the world's processor business compared with around 17 per cent for AMD.

The re-opening of the case will comes as a surprise to many who had believed that the investigations were at an end. In 2002, Mr Monti himself is reported to have said that the Commission had failed to find any evidence of wrongdoing on the part of Intel.

Nevertheless, AMD has continued to prod the Commission into action. The company has even gone as far as appealing to the US Supreme Court to release some 600,000 documents which it believes contains evidence that Intel misused its position.

The Commission is also investigating whether a number of EU countries - Austria, Belgium, Finland, France, Germany, Italy and the Netherlands - ignored EU competition rules and issued purchase orders which were tailored to meet Intel specifications.