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The raids are said to be connected to the recent allegations of business malpractice and monopoly activity alleged by rival AMD.

Competition Commission spokesman Jonathan Todd explained that European Union 'officials, accompanied by officials from national competition authorities, are conducting inspections of several premises of Intel Corporation in Europe as well as a number of IT firms manufacturing or selling computers. The investigations are being carried out within the framework of an ongoing competition case'.

Last month AMD filed a lawsuit against Intel alleging that the company had used improper methods to persuade manufacturers

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not to buy processors from AMD. The methods used are alleged to involve predatory pricing, marketing subsidies and cash payments. Intel denies all the accusations. However, the company was found guilty of antitrust behaviour in Japan earlier this year.

There has also been a continuing anti-trust case in the EU since October 2000 when AMD alleged Intel used coercion to deter companies from buying AMD processors. That case was reopened last year following AMD persistence, including subpoenaing some 600,000 documents related to the case in the US Supreme Court.

Unsurprisingly, AMD welcomed yesterday's move. 'Today's dawn raids should come as good news to consumers across Europe,' said Thomas M. McCoy, AMD executive vice president, legal affairs and chief administrative officer. 'Every computer user has a strong interest in ensuring that the full truth about Intel's anti-competitive abuses is revealed and corrected.'

'The European Commission dawn raids show that Intel cannot and should not escape the scrutiny of antitrust officials around the world - nor can Intel escape the consequences of its anti-competitive actions, which raise prices, threaten innovation and harm consumers'.