Intel competition fine overturned by top EU court

The European Commission fined Intel for offering rebates to computer manufacturers. Credit: Tupungato /Shutterstock. · Verdict · Tupungato /Shutterstock.

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European Union’s (EU) Court of Justice has ruled in favour of Intel, concluding a legal battle that spanned nearly two decades.

The court has overturned a €1.06bn ($1.15bn) fine initially imposed by EU regulators, who accused the US chipmaker of engaging in anticompetitive practices.

In a statement, the bloc’s top court said: “The Court of Justice dismisses the Commission’s appeal, thereby upholding the judgment of the General Court.”

According to Reuters, in 2009, the European Commission (EC) fined Intel for offering rebates to computer manufacturers such as Dell, Hewlett-Packard, and Lenovo, contingent on them purchasing most of their chips from Intel.

The EC argued that these rebates were an attempt to block Intel’s rival AMD from the market, constituting anticompetitive behaviour.

Intel challenged the 2009 decision but lost in the EU’s General Court in 2014.

However, the company succeeded on appeal in 2017 when the EU’s highest court found a legal error and ordered a case review.

Subsequently, the general court annulled part of the 2009 decision in 2022.

However, it maintained the commission's finding of market abuse through naked restrictions, which solely aim to eliminate competitors, although the judges cancelled the entire €1.06bn fine, stating they could not ascertain the portion of the penalty related to the naked restrictions.

The commission responded by reimposing a reduced fine of €376m in September 2022, based on the naked restrictions, which Intel is currently contesting in the courts.

A spokesperson for Intel, as reported by The Guardian, said: “We are pleased with the judgment delivered by the court of justice of the European Union today and to finally put this part of the case behind us.”

A commission representative said: “We take note of the judgment and we will of course carefully assess it.”

"Intel competition fine overturned by top EU court " was originally created and published by Verdict, a GlobalData owned brand.


 


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