Intel Hit with Massive $400M EU Antitrust Penalty

On Sept Global semiconductor leader Intel has come under scrutiny for alleged anti-competitive actions dating back two decades. Recently, it was slapped with a substantial €376 million (roughly $400 million) fine by European Union antitrust regulators. The charge? "Abuse of its dominant position in the x86 CPU chip market."

Intel has responded by stating that it is in the process of evaluating its options regarding the fine.

Notably, this is not the first time Intel has faced such allegations. Back in 2009, the company was initially fined €1.06 billion by the European Commission (EC) for purported anti-competitive practices, including obstructing competitors like AMD. However, in a significant development in 2022, this substantial fine, initially imposed in Luxembourg, was overturned by the European Union General Court, citing crucial errors in the EC's 2009 decision.

Nevertheless, it's worth noting that the court did concur with the EC's view that Intel had unfairly marginalized its competitors, prompting the EC to reopen its investigation. Recently, the EC announced a €376 million fine against Intel for actions spanning from November 2002 to December 2006. During this period, Intel allegedly made payments to Hewlett-Packard (HP), Acer, and Lenovo to hinder the products of rival companies. It's important to highlight that this fine is significantly lower than the previous one.

In its official statement, the EC emphasized that "under EU competition rules, the General Court found that Intel's actions, which could be described as flagrant restrictions, constituted an abuse of its dominant market position."

Intel has responded by indicating that it is currently reviewing the EC's decision and the €376 million fine to determine the basis for potential appeals to the European Court of Justice and the likelihood of success. They have also underscored that the European Union General Court had previously cleared Intel of wrongdoing in a crucial aspect of the case in 2022.

Despite expressing disappointment regarding the size of the fine, Intel has committed to maintaining its focus on future investments within the European Union. Additionally, the company has expressed its dedication to collaborating with the EC to further advance the development of the European semiconductor industry.

It's important to note that Intel's plans to establish a new semiconductor manufacturing facility in Magdeburg, Germany are currently pending approval from the EC for nearly €10 billion in national subsidies from the German government.