EU regulators ‘faulty’ in Intel case

European Union regulators failed to record notes of a meeting in their case against Intel, in which the world’s largest computer-chip maker was fined 1.06 billion euros ($1.57 billion), the EU’s ombudsman said on Wednesday.

There was a case of “maladministration” by the European Commission in its failure to make a “proper note” of a meeting with an executive from personal computer maker Dell, Nikiforos Diamandouros, the ombudsman, said in an e-mailed statement.

“I hope that my decision in this case will help the commission to improve its administrative procedures by ensuring that its future antitrust investigations are fully documented,” Diamandouros said.

The decision follows criticisms by U.S. lawmakers that the EU unfairly pursues U.S. technology companies, including investigations of Microsoft, Qualcomm and International Business Machines. Intel has complained in an appeal that the fine was “manifestly disproportionate” and that the EU committed numerous errors.

“The ombudsman’s decision speaks for itself,” Intel said in an e-mailed statement. “The commission’s competition department ignored evidence that was potentially exculpatory for Intel and that it was selective in its use of other evidence.”

Companies have also complained that the commission’s administrative process lacks proper checks and balances to ensure fair decision making.

The commission said in an e-mailed statement that it disagrees with the ombudsman’s position that formal agreed minutes should have been prepared. The ombudsman “does not take into account the nature and purpose” of an EU regulation “which is to take formal statements from natural or legal persons that are given on a purely voluntary basis,” the commission said.

Philip Lowe, director general of the EU’s competition department, has defended the commission’s procedures, saying companies rights are ensured by a hearing officer. The regulator also has internal “devil’s advocate” panels that vet decisions, advisory committees of EU member states and an appeal process at European courts, he said at a conference in Brussels on Tuesday.

Intel appealed the EU’s May 13 ruling to the European Court of First Instance in Luxembourg, arguing that the commission “misinterpreted and ignored evidence.” The company said the EU regulator committed “numerous errors” in trying to show that Intel’s use of rebates hindered competition and violated EU antitrust rules.