Microchips – Image © Andrew Barker – Fotolia
(BRUSSELS) – The European Commission re-imposed a fine of EUR 376.36 million on American tech giant Intel Friday for a previously established abuse of dominant position in the market for x86 computer chips.
A fine of EUR 1.06 billion had been imposed on Intel in 2009, after the Commission found that Intel abused its dominant position in the market for x86 CPUs.
This decision was based on findings that Intel had engaged in two specific forms of illegal practices by: (i)giving wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel (so-called ‘conditional rebates’); and (ii) paying computer manufacturers to halt or delay the launch of specific products containing competitors’ x86 CPUs and to limit the sales channels available to these products (so-called ‘naked restrictions’).
However the EU’s General Court partially annulled the 2009 decision in 2022, in particular the Commission’s finding related to Intel’s conditional rebates practice.
At the same time, the General Court confirmed that Intel’s ‘naked’ restrictions amounted to an abuse of dominant market position under EU competition rules. The General Court also annulled the fine imposed on Intel in its entirety after concluding that it could not establish the amount of the fine relating only to the naked restrictions.
Following this judgment, the Commission has now adopted a new decision imposing a fine on Intel only for the naked restrictions.
Naked restrictions constitute a serious infringement of Article 102 Treaty on the Functioning of the European Union (‘TFEU’) and the Commission has decided to re-impose a fine of around EUR 376.36 million on Intel. The lower fine imposed by today’s decision reflects the narrower scope of the infringement compared to the 2009 Commission decision.
“Intel paid its customers to limit, delay or cancel the sale of products containing computer chips of its main rival. This is illegal under our competition rules,” said Commissioner in charge of competition Didier Reynders: “Our decision shows the Commission’s commitment to ensure that very serious antitrust breaches do not go unsanctioned.”
More information will be made available under the case number AT.37990 in the public case register on the Commission’s competition website once any confidentiality issues have been resolved.
EUR 376.36m fine on Intel for anticompetitive practices in the market for computer chips - guide
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