Intel loses challenge against €1.06 billion fine
On the 13 May 2009, the European Commission reached a decision finding that Intel Corporation infringed Article 82 of the EC Treaty by abusing its dominant position on the x86 central processing unit (CPU) market.
The decision imposed a fine of EUR 1.06 billion and obliged Intel to cease the identified illegal practices, to the extent that they are ongoing, and not to engage in the same or equivalent practices in the future.
The Commission maintained that Intel broke EU antitrust law by engaging in two types of practices.
First, Intel gave wholly or partially hidden rebates to computer manufacturers "“ Dell, HP, NEC, Lenovo on condition that they bought all, or almost all, their x86 CPUs from Intel. Intel also made direct payments to Europe's largest PC retailer "“ Media Saturn Holding (MSH) on condition that it stocked only computers with Intel x86 CPUs.
Secondly, Intel made direct payments to computer manufacturers "“ HP, Acer, Lenovo - to stop or delay the launch of specific products containing a competitor's x86 CPUs and to limit the sales channels available to these products.
Intel's anticompetitive behaviour diminished competitors' ability to compete on the merits of their x86 CPUs. This resulted in a reduction of consumer choice and in lower incentives to innovate.
Fast forward 5 years to 12th June 2014 and Judges at the Luxembourg-based General Court have backed the Commission's decision.
"The Commission demonstrated to the requisite legal standard that Intel attempted to conceal the anti-competitive nature of its practices and implemented a long term comprehensive strategy to foreclose AMD from the strategically most important sales channels," the court said in a near 300-page decision.
Judges said the EU watchdog had not been heavy-handed with the level of the fine, equal to 4.15 percent of Intel's 2008 turnover, versus a possible maximum of 10 percent.
