Intel has overturned a massive€1.06 billion (£880 million) fine imposed by the European Commission, ending a decades-long legal dispute.
The European Court of Justice (ECJ) upheld a previous ruling that annulled the hefty fine.
The fine was initially levied in 2009 over accusations Intel abused its dominant position in the market for central processing units (CPUs).
Background of the Case
The origins of this case date back 24 years when a rival chipmaker filed a complaint with EU competition authorities.
The European Commission launched an investigation in 2004. This culminated in a 2009 ruling accusing Intel of leveraging its market dominance to offer rebates to major computer manufacturers like Dell, HP, and Lenovo on the condition that they used Intel CPUs exclusively or primarily.
The Commission alleged Intel paid these manufacturers to delay or halt the launch of products containing rival chips—practices referred to as “naked restrictions” under EU competition law.
Long Legal Journey and Final Ruling
Intel contested the fine in 2009 but initially lost its appeal in the EU General Court in 2014.
However, in 2017, the EU’s top court found a legal error in the Commission’s economic analysis and ordered a review of the case.
This prompted the General Court to revisit the issue. In 2022, it annulled the €1.06 billion fine due to insufficient evidence that Intel’s rebates restricted competition.
The court, however, upheld the Commission’s findings regarding “naked restrictions.”
Following this, the European Commission re-imposed a smaller fine of €376 million based solely on the naked restrictions claim. Intel has launched a fresh challenge against this new fine, which remains unresolved.
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The Court’s Decision
The latest ruling by the ECJ sided with Intel on its key arguments.
The court argued the Commission failed to substantiate claims Intel’s rebate strategy shut out competition, dealing a blow to the Commission’s economic analysis.
An Intel spokesperson said:
“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.”
A spokesperson for the European Commission acknowledged the ruling, added:
“We take note of the judgment and we will of course carefully assess it.”
Broader Implications for EU Competition Law
The outcome of Intel’s protracted legal battle underscores the complexities and challenges in proving antitrust cases involving rebates and alleged market abuses.
The decision could influence how EU antitrust regulators approach similar cases in the future, potentially raising the bar for proving anti-competitive behavior involving dominant firms and their business practices.
As Intel moves forward from this drawn-out legal tussle, the final resolution serves as a crucial example of how the EU’s legal framework handles significant competition cases and lengthy appeals.
