Intel wins EU antitrust case and overturns billion-dollar fine

Tech giant Intel has won a major victory in a long-running legal dispute with the European Commission, with the European Court of Justice upholding a lower court's decision to overturn a huge €1.06 billion fine. The fine was imposed on Intel in 2009 for alleged abuse of a dominant position in the microprocessor market. Thursday's verdict brings to a close one of the longest antitrust cases in the history of the European Union.

Intel, the US semiconductor maker, won a key legal battle against the European Commission, which fined it €1.06 billion in 2009. At the time, the Commission claimed that Intel $INTC had used illegal commercial practices to restrict competition, in particular AMD, which was its main rival in the x86 microprocessor market.

According to the charges, Intel offered computer manufacturers such as Dell, HP, Lenovo and NEC significant discounts on its processors on condition that they would favour its products over those of its competitors. This practice, according to the Commission, was intended to put other chip makers at a disadvantage and distort fair competition in the market, which had a negative impact on innovation and consumer choice.

Intel immediately appealed the fine, leading to a protracted court case that lasted almost two decades. In 2022, the European Court of Justice, specifically its lower branch, the General Court, ruled in Intel's favour and annulled the fine. The Court said that the European Commission's analysis was insufficient and failed to prove that the discounts offered actually restricted competition. The Commission appealed against this decision and sought reinstatement of the original fine.

On Thursday, however, the European Court of Justice upheld the lower court's decision and rejected all the arguments put forward by the European Commission in its appeal. The verdict marks the definitive end of this part of the case.

Still, the case is not completely closed for Intel. The company still faces a €376.4 million fine imposed by the European Commission in connection with other sales restrictions that the General Court ruled illegal in 2022. However, this parallel case remains open for the time being.

The outcome of this litigation could have far-reaching implications not only for Intel but also for future competition regulation in the European Union. The European Commission faces pressure to exercise greater care in imposing large fines and to ensure that its decisions are legally unshakable.

Intel said in a statement that it is satisfied with the verdict and looks forward to finally being able to focus on its business activities without legal obstacles. The success marks a key relief for the company after years of legal battles with European authorities.

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