Intel has struck back at the European Commission’s antitrust regulator, claiming that the charges brought against Intel contain significant misunderstandings made by the EC. Last week we reported that the European Commission had sent Intel a Statement of Objections, containing allegations that Intel tried to use its market share to muscle its rival, Advanced Micro Devices, out of the processor business.

If the charges in the Statement of Objections are found to be valid, Intel could face significant fines and penalties on an annual basis. Intel claims that the European Commission did not understand Intel’s pricing and manufacturing costs methods, causing the EC to make some assumptions that were incorrect. Intel also claims that it will be working with the EC to assist the Commission in better understanding and interpreting those methods.

The Intel case is a keystone in the European Commission’s test of its authority and persuasiveness over the European Union courts. Regulators and businesses alike are awaiting an important EU court ruling on September 17th in which Microsoft has challenged a 2004 landmark decision of the Commission where the Commission found that Microsoft had violated antitrust laws. 

Stay tuned on this one.