Intel has won a significant victory in its long-running legal battle to overturn a €1.06bn (£880m) fine imposed by the European Commission for allegedly abusing its market dominance in the computer chip sector. The European court of justice, the EU’s highest court, upheld an earlier ruling that quashed the fine, dismissing parts of the competition charges against the US chipmaker.
The case, which has spanned over two decades, revolved around Intel’s use of rebates and other tactics in the sale of central processing units (CPUs). The European Commission had claimed that Intel offered rebates to computer manufacturers such as Dell, Hewlett-Packard, and Lenovo, on the condition they exclusively used Intel’s CPUs, and also paid these companies to delay or halt the launch of products containing chips from rival manufacturers. These actions, according to the Commission, constituted anticompetitive behavior and led to the 2009 fine, then the largest ever imposed by the EU.
While the European court’s decision in favor of Intel is a crucial moment, the case is not yet fully resolved. Intel has filed a new legal case against the Commission, challenging a separate €376m fine, which was reimposed in September 2022 based on the finding that Intel’s actions, particularly the so-called “naked restrictions,” constituted a form of market abuse aimed solely at eliminating competitors. This latest fine is currently under review in the court system.
The legal proceedings date back to 2000, when a rival chipmaker filed a complaint with EU competition authorities, leading to an investigation launched in 2004. In 2009, the Commission concluded that Intel had violated competition rules, but the case has since been through multiple rounds of litigation. Intel initially lost its appeal in 2014 but succeeded in reopening the case in 2017 after the EU’s highest court found errors in the Commission’s economic analysis.
Intel’s successful challenge to the Commission’s economic findings—specifically its inability to prove that the rebates shut out competitors—marks a turning point in the dispute. However, the ongoing legal battle over the €376m fine highlights the complexity and length of EU competition cases, with no final resolution in sight.
Intel expressed satisfaction with the recent judgment, saying it was pleased to finally conclude this part of the case. The European Commission, meanwhile, noted the judgment and indicated it would carefully assess the court’s decision.
Featured image courtesy of Barchart.com
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