EC Reimposes €376 Million Fine on Intel for Anticompetitive Practices

The European Commission has reimposed a fine of €376.36 million on Intel for a previously established abuse of its dominant position in the market for computer chips. Intel engaged in a series of anticompetitive practices aimed at excluding competitors from the relevant market in breach of EU antitrust rules.

In 2009, the EC fined Intel €1.06 billion after finding that the company abused its dominant position in the market for x86 CPUs. The decision was based on findings that Intel had engaged in two specific forms of illegal practices by giving wholly or partially hidden rebates to computer manufacturers on condition that they bought all or almost all, their x86 CPUs from them (so-called ‘conditional rebates'), and paying computer manufacturers to halt or delay the launch of specific products containing competitors' x86 CPUs and to limit the sales channels available to these products (so-called 'naked restrictions').

In 2022, the General Court partially annulled the 2009 decision, in particular the finding related to Intel's conditional rebates practice. At the same time, the General Court confirmed that Intel's naked restrictions amounted to an abuse of its dominant market position under EU competition rules. The General Court also annulled the fine imposed on Intel in its entirety after concluding that it could not establish the amount of the fine relating only to the naked restrictions.

Following this judgment, the EC adopted a new decision imposing a fine on Intel only for the naked restrictions. These restrictions took place between November 2002 and December 2006 and consisted of payments made by Intel to three computer manufacturers (HP, Acer, and Lenovo) to halt or delay the launch of specific products containing competitors' x86 CPUs and to limit the sales channels available to these products.

Naked restrictions constitute a serious infringement of Article 102 Treaty on the Functioning of the European Union (‘TFEU') and the EC has decided to reimpose a fine of €376.36 million on Intel. The lower fine imposed by the decision reflects the narrower scope of the infringement compared to the 2009 EC decision. This decision is without prejudice to the EC's pending appeal against the General Court's annulment of its 2009 finding of an infringement as regards Intel's conditional rebates.