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Tuesday, May 28, 2024

EU Reinstitutes Intel’s Market Dominance Abuse Penalty of $400 Million


<p>In an important step, the European Commission said on Friday that Intel will once again be subject to a large punishment of 376.36 million euros, or $400.26 million. This fine was imposed because Intel had previously and demonstrably abused its dominating position in the computer chip industry. The judgement is a follow-up to an earlier ruling by the General Court of the EU from 2022, which only partly upheld an enormous 1.06 billion euro sentence levied on Intel back in 2009. The 2009 penalty centered on Intel’s alleged attempts to stifle Advanced Micro Devices’ competitiveness in the x86 central processor unit (CPU) market.<img decoding=”async” class=”alignnone wp-image-195794″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-eu-reinstitutes-intels-market-dominance-abuse-penalty-of-400-million-download-2023.jpg” alt=”theindiaprint.com eu reinstitutes intels market dominance abuse penalty of 400 million download 2023″ width=”1234″ height=”821″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-eu-reinstitutes-intels-market-dominance-abuse-penalty-of-400-million-download-2023.jpg 275w, https://www.theindiaprint.com/wp-content/uploads/2023/09/theindiaprint.com-eu-reinstitutes-intels-market-dominance-abuse-penalty-of-400-million-download-2023-150×100.jpg 150w” sizes=”(max-width: 1234px) 100vw, 1234px” title=”EU Reinstitutes Intel's Market Dominance Abuse Penalty of $400 Million 3″></p>
<p>The General Court rejected the Commission’s argument that Intel’s rebate arrangements with computer makers had hurt competition during its 2022 deliberations. The Commission persisted in seeking justice in spite of this.</p>
<p>The European Commission made it clear in its most recent decision that the reason for the reinstated punishment was now the payments Intel made to computer makers between 2002 and 2006. These payments were made with the intention of getting businesses like Hewlett Packard, Acer, and Lenovo to postpone or stop releasing certain products using rival x86 CPUs. These payments categorically constituted an abuse of market power, the Court had already stated in the previous year.</p>
<p>However, the prior decision had partially been overturned because it had called into question the proportionality of the punishment. The EU’s dedication to encouraging fair competition in the ICT sector is shown by this challenging legal path, which ensures that monopolistic businesses cannot use anticompetitive methods to hinder innovation and choice in the market.</p>
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