Intel appeals staggering $1.3 billion fine issued in 2009 by the EU

Back in 2009 Intel was fined a huge $1.3 billion for allegedly uncompetitive practices. They were accused by EU antitrust regulators of paying big name companies to only use Intel chips in their PCs and not use anything from AMD. The major computer manufacturers that recieved unfair rebates include HP and Lenovo.

The $1.3 billion fine represents 10% of Intel’s 2008 turnover yet Intel claim that the ruling was unjust due to the fact it relied on “profoundly inadequate” evidence in order to secure the judgement. A 5 man EU General court in Luxembourg will now hear the appeal cases from both Intel and EU Antitrust regulators over the next 4 days. Intel are pushing for a total elimination of the fine, or at least a significant reduction.

Intel stated the evidence was inadequate because the EU antitrust regulators relied on subjective comments from Intel’s customers. Dell, Lenovo, Hewlett Packard, NEC and Media Saturn Holding all recieved rebates from Intel during the period in question for opting for their processors.

Intel are accused by the Antitrust commission of carefully disguising anti-competitive practices whilst the commission themselves are accused of procedural malpractices in the way they investigated the case against Intel. The General Court is expected to rule in the coming months. Should Intel not get a favourable outcome in the case they will be allowed one last chance to overturn the ruling by going to the EU courts of justice.

Source