Intel challenged the EU antitrust regulators regarding a 376 million euro fine. The fine was imposed nearly two years ago for excluding rivals from the market. Intel argued that it was disproportionate and unfair.
This case originated in 2009. At that time, the European Commission fined Intel a record 1.06 billion euros for blocking Advanced Micro Devices. Intel successfully convinced the General Court to scrap the penalty in 2022.
However, judges agreed with part of the Commission’s 2009 decision. Consequently, the EU competition watchdog re-imposed a 376 million euro fine. This fine was for payments Intel made to HP, Acer, and Lenovo to halt or delay rival products between 2002 and 2006.
These are “naked restrictions” and antitrust regulators frown on such practices. Intel then took the case back to the General Court, and it asked for the annulment of the EU decision and penalty.
Intel’s lawyer argued that the EU competition enforcer had not considered the limited scope of the violations involving HP, Acer, and Lenovo. “The Commission cannot sustain a finding that there was an overall strategy to foreclose competitors from the entire x86 chips market. These were narrow, tactical moves,” Daniel Beard stated.
Beard continued, “The naked restrictions can’t be treated as in effect of equal weight to each of the pricing practices which were overturned. Nor do they have the same sort of cumulative effect or strategic weight. They, on their own, don’t sustain an overall, market-wide strategy finding.” He further asserted that the Commission had imposed “a wholly disproportionate and unfair” fine.
The EU watchdog rejected Intel’s arguments. “The Commission correctly applied the finding guidelines, and when in doubt, opted in Intel’s favour,” its lawyer, Pedro Caro de Sousa, stated. He added, “The fine is clearly not disproportionate to the seriousness of Intel’s conduct, amounting to 1% of its turnover on the last year of the infringement, and about 0.5% of its turnover today.”
Both Intel and the Commission have requested the court to resolve the issue by setting the fine’s size. A ruling is expected in the coming months.
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