Intel Fights EU Antitrust Fine in European Court

LUXEMBOURG, May 16 (Reuters) – U.S. chipmaker Intel is contesting a €376 million ($421.4 million) fine imposed by EU antitrust regulators for anti-competitive practices. The fine was levied for payments Intel made to HP, Acer, and Lenovo to delay the launch of rival products from November 2002 to December 2006.

This legal battle traces back to 2009, when the European Commission originally fined Intel a record €1.06 billion for blocking rival Advanced Micro Devices (AMD). In 2022, Intel managed to have part of that decision annulled by the General Court, Europe’s second-highest court. However, the court upheld part of the Commission’s initial ruling, leading to the more recent fine.

Intel’s lawyer, Daniel Beard, argued that the EU had failed to recognize the limited nature of Intel’s violations. “The Commission cannot sustain a finding that there was an overall strategy to foreclose competitors from the entire x86 chips market. These were narrow, tactical moves,” Beard stated, adding that the fine imposed was “wholly disproportionate and unfair.”

The EU’s lawyer, Pedro Caro de Sousa, countered that the fine was appropriate given the severity of Intel’s actions, noting it represents 1% of the company’s turnover during the final year of the infringement. “The fine is clearly not disproportionate to the seriousness of Intel’s conduct,” he argued.

Both Intel and the Commission urged the court to determine the appropriate size of the penalty. A ruling from the General Court is expected in the coming months, which could further shape the conditions for competition in the semiconductor market.