The European Union (EU) has re-imposed a hefty fine of 376 million Euros ($400 million) on Intel, the U.S. chipmaker, stemming from a long-standing antitrust case. This new judgment follows a record fine of 1.06 billion euros levied in 2009, which was later overturned by the EU General Court in 2022 and sent shockwaves through the tech sector.
The roots of this legal battle date back to the early 2000s, when complaints against Intel were first filed with the EU Commission. The initial case alleged that Intel had engaged in anti-competitive practices between 2002 and 2007. At the heart of the matter were allegations that Intel offered rebates to computer makers, including industry giants like Hewlett Packard, Acer, and Lenovo, to use its own computer chips instead of those of its rival, Advanced Micro Devices (AMD).
Then in 2022, the EU's General Court nullified the colossal 1.06 billion euro fine imposed in 2009. The court's ruling cited a lack of adequate evidence to substantiate anti-competitive practices and price rebates impacting competition negatively.
Undeterred by the setback, the EU Commission has now reinstated a fine against Intel, this time focusing on payments made by the chipmaker between 2002 and 2006. These payments were allegedly directed towards delaying or cancelling the launch of products containing AMD's x86 central processing units (CPUs). The Commission asserts that these payments constituted an abuse of Intel's dominant market position in the computer chip sector.
As of now, Intel has not issued an immediate response to the EU Commission's latest decision.
This case is part of a broader landscape where the EU has been cracking down on tech giants for alleged antitrust violations. The Intel antitrust case serves as a reminder of the EU's unwavering stance on competition law enforcement in the tech sector. It highlights the EU Commission's determination to hold tech giants accountable for alleged anti-competitive practices, signalling a continued era of scrutiny and potential penalties for digital giants operating in Europe.
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