Brussels imposes another 376 million fine on Intel for monopolistic abuse in chip market

18 months have passed since the incident EU General Court Annulled the fine of 1 billion 60 million euros imposed by the European Commission to the American computer company Intel for abuse of dominant position in the market microprocessors. Brussels decided to counterattack again and reimpose the currently valid penalty. 376 million euros alleging that the multinational company used anti-competitive practices to exclude competitors from the market. EU antitrust rules.

The first decision was made in 2009 Following an investigation determined by Brussels two types of illegal practices. First, Intel offered computer manufacturers full or partial rebates, called conditional rebates, provided they purchased all or nearly all of its x86 processors. The latter paid computer manufacturers to halt or delay the release of certain products containing competing x86 processors and limit the sales channels available for these products, so-called ‘bare restrictions’.

In its decision dated 2022, the European Court decided to partially annul the decision of the Community Executive Board.. Specifically, the part about Intel’s “conditional rebates” also confirmed that the American giant’s “explicit restrictions” amounted to an abuse of its dominant position in the market. According to EU competition rules. However, the General Court annulled the entire fine, concluding that it could not determine the amount of the fine in relation to the ‘clear restrictions’ which, in Brussels’ view, constituted a serious breach of Article 102 of the EU Treaty.

Between 2002 and 2006

Therefore, the European Commission decided to further sharpen its decision and fine Intel only for explicit restrictions. According to Brussels, these restrictions occurred between November 2002 and December 2006 and consisted of payments made by Intel to three computer manufacturers:HP, Acer and Lenovo– stopping or delaying the launch of certain products with competing x86 processors and limiting sales channels. Available for these products.

“Intel paid customers to limit, delay or cancel sales of its main competitor’s products containing computer chips. This is illegal under our competition rules. Our decision demonstrates the Commission’s determination to ensure that very serious antitrust infringements do not go unpunished,” said the commissioner currently responsible for the competition portfolio. Didier ReyndersAbout the new fine of 376 million. As explained by the Commission, the reduction in the initial amount “reflects the more limited scope of the infringement.” Despite the decision, Brussels continues to appeal against the annulment of the General Court decision.

Source: Informacion

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