The Strategist

EC re-fines Intel over violations in PC chip market

09/25/2023 - 03:49

The European Commission fined Intel Corp. due to its misuse of the dominating position in the computer chip industry. The news fine was lowered to €376.36 million.

Candra DP
Candra DP
The European Court of General Jurisdiction overturned the regulator's earlier ruling in the case, which was taken back in 2009 and called for a then-record fine of €1.06 billion, in the early 2022 timeframe.

The EC claimed in a statement that Intel engaged in anti-competitive behavior intended to deny rivals access to the market.

According to the watchdog, its 2009 decision was based on two categories of violations identified by Intel: the company's offering of compensatory discounts to manufacturers who agreed to purchase all or nearly all of their computer chips from it, as well as payment to PC makers for declining or delaying the release of devices using similar chips made by its competitors.

The European Court of Justice dissented from the EC's view in 2022 on the first portion of the allegations, but it agreed with them on the second, which it determined to be an abuse of a dominant market position.

In accordance with the EC's recent decision, the fine is only applied to the second set of infractions, which took place between November 2002 and December 2006. According to the EC, at that time, Intel paid PC manufacturers HP, Acer, and Lenovo to postpone or halt the distribution of PCs using chips from other businesses.