Intel fined €1.06bn for abuse of dominant position

[Sean Evans]

Intel fined €1.06bn for abuse of dominant position
14 May 2009

The European Commission has imposed a fine of €1.06bn on Intel Corporation for violating EC Treaty antitrust rules on the abuse of a dominant market position.

It was found by the European Commission that Intel allegedly engaged in illegal anticompetitive practices by excluding competitors from the market for x86 central processing units (CPUs).

Intel was ordered to cease the illegal practices immediately to the extent that they are still ongoing.

During October 2002 to December 2007, Intel held a dominant position in the worldwide x86 CPU market with at least 70% market share.

The Commission found that Intel engaged in two specific forms of illegal practice.

First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from the company. Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs, which prevented consumers from choosing alternative products.

Second, Intel made direct payments to 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.

The Commission found that these practices constituted abuses of Intel's dominant position on the x86 CPU market that harmed consumers throughout the EEA and undermined competition and innovation.

The Commission will monitor Intel's compliance with the decision.