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The Commission has found that Intel excluded its competitor in two ways: through illegal loyalty rebates by paying manufacturers and retailers to restrict the commercialisation of competitors' products.These illegal actions were designed to preserve Intel's market share at a time when their only significant rival - AMD - was a growing threat to Intel's position. This threat was widely recognised by both computer manufacturers and in Intel's own internal documents seen by the Commission. The computer manufacturers involved are Acer, Dell, HP, Lenovo and NEC. The retailer involved is Media Saturn Holdings, the parent company of Media Markt.

Naturally, the Commission favours strong, vigorous price competition, including by dominant firms. However, Intel went beyond normal price competition by giving rebates to computer manufacturers on the condition that they bought all, or almost all, of their CPUs from Intel. Intel also made direct payments to a major retailer – Media Markt - on the condition that it stocked only computers with Intel CPUs.

Just to give you one example: in one case, a computer manufacturer took up only a small part of an offer by AMD of free CPUs because acceptance of all the free CPUs offered would have led that computer manufacturer to breach the conditions of its agreement with Intel and to lose rebates on all its much more numerous Intel purchases.

The new technology, dubbed TraceMonkey, promises to speed up Firefox's ability to deliver complex applications. The move heightens the threat posed by a nascent group of online alternatives to Microsoft's most profitable software: PC applications, like Microsoft Office, that allow Microsoft to burn hundreds of millions of dollars on efforts to seize control of the online world. Microsoft's Business Division, which gets 90% of its revenues from sales of Microsoft Office, spat out $12.4 billion in operating income for the fiscal year ending June 30. Google (nasdaq: GOOG - news - people ), however, is playing a parallel game, using profits from its online advertising business to fund alternatives to Microsoft's desktop offerings. Google already says it has "millions" of users for its free, Web-based alternative to desktop staples, including Microsoft's Word, Excel and PowerPoint software. The next version of Firefox, which could debut by the end of this year, promises to speed up such applications, thanks to a new technology built into the developer's version of the software last week. Right now, rich Web applications such as Google Gmail rely on a technology known as Javascript to turn them from lifeless Web pages into applications that respond as users mouse about a Web page. TraceMonkey aims to turn the most frequently used chunks of Javascript code embedded into Web pages into binary form--allowing computers to hustle through the most used bits of code--without waiting around to render all of the code into binary form.

As regards interoperability, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies as regards interoperability disclosures. In the complaint by ECIS, Microsoft is alleged to have illegally refused to disclose interoperability information across a broad range of products, including information related to its Office suite, a number of its server products, and also in relation to the so called .NET Framework. The Commission's examination will therefore focus on all these areas, including the question whether Microsoft's new file format Office Open XML, as implemented in Office, is sufficiently interoperable with competitors' products. As for the tying of separate software products, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies. In a complaint by Opera, a competing browser vendor, Microsoft is alleged to have engaged in illegal tying of its Internet Explorer product to its dominant Windows operating system. The complaint alleges that there is ongoing competitive harm from Microsoft's practices, in particular in view of new proprietary technologies that Microsoft has allegedly introduced in its browser that would reduce compatibility with open internet standards, and therefore hinder competition. In addition, allegations of tying of other separate software products by Microsoft, including desktop search and Windows Live have been brought to the Commission's attention. The Commission's investigation will therefore focus on allegations that a range of products have been unlawfully tied to sales of Microsoft's dominant operating system.

"Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal." "We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don't perform the market acts accordingly."

"Despite our strongly held views, as we go through the appeals process we plan to work with the Commission to ensure we're in compliance with their decision.