Sept. 22 (UPI) — The European Commission has re-imposed a $400 million fine on Intel, settling portions of a $1 billion antitrust judgment issued against the U.S. chipmaker in 2009. The fine was previously dismissed on appeal but has now been reinstated, albeit at a lower amount.
The EU General Court dismissed the $1 billion fine last year due to the inability to determine a new penalty solely for the illegal sales restrictions. As a result, the Commission has settled at a $400 million fine, which represents a 60% reduction.
The original fine was first imposed by the Commission in 2009 after finding Intel guilty of abusing its dominant position in the global market for x86 computer chips. The Commission discovered that Intel provided lucrative rebates to computer manufacturers in exchange for the exclusive installation of its microprocessors in new hardware.
Not only that, but Intel also allegedly paid laptop suppliers such as HP, Acer, and Lenovo to prevent the launch of products featuring technology from its competitors.
The case has undergone years of appeal, with the EU General Court overturning Intel’s rebuttal in 2014. However, in 2017, the EU Court of Justice reinstated the appeal, prompting the European Commission to clarify its rules on conditional rebates and their potential infringement on antitrust laws.
Last year, the General Court dismissed parts of the 2009 decision regarding conditional rebates but upheld Intel’s guilt of antitrust violations. The ruling on conditional rebates is currently under appeal, which may result in a further imposition of the fine in the future.
Intel is not expected to appeal the 2022 court decision.
This news comes at a time when tech giants are facing increased scrutiny for their market dominance and alleged anti-competitive practices. These companies have been accused of using their size and influence to limit competition and coerce customers and rivals into exclusive product usage.
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