Intel, the US chipmaker, has successfully quashed a €1.06bn fine imposed by the European Commission, marking a significant victory in a legal case that has spanned over two decades. On Thursday, the European Court of Justice upheld an earlier ruling that annulled the fine, which had been levied against Intel for allegedly abusing its market dominance in the sale of computer chips.
The case dates back to 2009 when the European Commission fined Intel for what it deemed anticompetitive practices, including offering rebates to computer manufacturers like Dell, Hewlett-Packard, and Lenovo, on the condition that they use Intel’s central processing units (CPUs) instead of those from competitors. The Commission also accused Intel of delaying the launch of products using rival chips, which is referred to as "naked restrictions" in EU competition law.
Although Intel has successfully overturned the €1.06bn fine, the case is not yet fully resolved. The chipmaker is now challenging a separate €376m fine imposed by the Commission last year, which relates to the "naked restrictions" part of the original 2009 ruling that was upheld by the courts.
A Long and Complex Legal Journey
The legal saga began when a rival chipmaker filed a complaint with EU competition authorities in 2000, leading to an official investigation in 2004. In 2009, the European Commission ruled that Intel had abused its dominant market position, resulting in a record-breaking €1.06bn fine at the time.
Intel initially lost its bid to overturn the decision in 2014 but succeeded on appeal in 2017 when the European Court of Justice called for a review of the case, citing legal errors. The case was returned to the EU's general court, which in 2022 annulled part of the 2009 decision, including the full €1.06bn fine. However, the court upheld the finding that Intel had used "naked restrictions" to harm competition.
Despite the Commission reimposing a smaller €376m fine based on this finding, Intel remains committed to challenging that decision in court.
Implications for Competition Law
Intel's win is seen as a setback for the European Commission's efforts to regulate market dominance and competition in the tech industry. The court found that the Commission had failed to prove that Intel's rebate scheme had effectively shut out competitors, a key component of its argument.
A spokesperson for Intel expressed satisfaction with the ruling, saying, "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."
The European Commission, while taking note of the judgment, stated it would carefully assess the ruling before deciding on its next steps.
