By love-89.com In a significant development, Intel has successfully contested a fine exceeding €1 billion imposed by the European Commission, which accused the U.S. chipmaker of misusing its market dominance in the sale of computer chips. The European Court of Justice issued a final ruling on October 24, 2024, endorsing an earlier decision that annulled the €1.06 billion (£880 million) fine while partially dismissing allegations of anticompetitive behavior.
However, this judgment isn’t the end of the road for Intel. The company has initiated a new legal battle against the Commission, challenging a separate €376 million fine linked to aspects of the 2009 ruling that the court upheld.
This extensive legal saga dates back over two decades, originating from an investigation into Intel’s sales practices for central processing units (CPUs), which are often described as the “brains” of computers. It highlights the complexities of the EU’s legal processes, where cases can linger in the court system for years. Former Italian Prime Minister Mario Draghi even cited this case as a prominent example of slow decision-making within the European bureaucracy, warning of a potential existential threat to the European economy posed by competing powers such as the U.S. and China.
The case traces back 24 years to when a rival chipmaker filed a complaint with EU competition authorities, leading to a formal investigation in 2004. By 2009, the Commission concluded that Intel had indeed abused its dominant position, resulting in a historic €1.06 billion fine. The Commission accused Intel, at that time the leading chipmaker globally, of offering undisclosed rebates to major computer manufacturers like Dell, Hewlett-Packard, and Lenovo, contingent on their exclusive purchases of Intel CPUs. Additionally, Intel was charged with financially incentivizing manufacturers to delay or cancel the launch of products featuring rival chips, a practice referred to as “naked restrictions” under EU competition law.
Intel sought to overturn the 2009 ruling and faced a setback in the EU’s General Court in 2014. However, a decisive appeal in 2017 led the EU’s highest court to agree to review the case, citing a legal error in previous judgments. The General Court later ruled in 2022 to annul part of the 2009 decision but confirmed the finding of market abuse concerning naked restrictions. That same year, judges nullified the entire €1.06 billion fine, stating they could not ascertain how much of the penalty was related to the naked restrictions.
In response, the Commission reimposed a €376 million fine last September based on the naked restrictions, which prompted Intel to launch another legal challenge that remains active within the courts.
In its defense, Intel successfully contested the Commission’s economic rationale, with judges asserting that Brussels failed to demonstrate that Intel’s rebates effectively excluded competitors from the market. A spokesperson for Intel expressed satisfaction with the court’s judgment, stating, “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.” Meanwhile, a spokesperson for the European Commission commented, “We take note of the judgment and we will of course carefully assess it.”