Intel, the world's biggest computer chipmaker was raided by the European Union competition regulators on allegations it abused its market position.

The regulators raided the company's office in Munich, Germany, said Chuck Mulloy, Intel spokesman.

Intel was accused of trying to abuse its dominant market position by selling its products below cost price and making cash payments to customer.

The European Commission confirmed the raid by saying it carried out unannounced inspections at the Intel premises.

The spokesman for European Commission, Johnathan Todd said it had a reason to believe that Intel had violated European laws on restrictive business practices.

The investigation started shortly after Intel's rival AMD raised complaints about the chip maker.

Last summer, the European Commission in its probe findings concluded that Intel was engaged in anti-competitive action against AMD.

AMD alleged that Intel was giving rebates to customers provided they bought Intel products and offering incentives to companies to delay or cancel products containing AMD technology.

Hearings about the charges will be in Brussels on 11 and 12 March and the European regulators will have the power to fine Intel up to 10% of its annual turnover once found guilty of the charges.