2009-05-13

By Editor, CIR

The European Commission has fined Intel a record EUR 1.06 billion for abusing its dominant market position and employing illegal sales practices to persuade manufacturers to carry its products.

The penalty against the world's largest chipmaker exceeds the fines totalling just over EUR1 billion against Microsoft and a EUR 896 million fine last year against French glass maker Saint-Gobain for price-fixing.

"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said the EU's competition commissioner, Neelie Kroes.

"Given that Intel has harmed millions of consumers, the size of the fine should come as no surprise."

The case originated in 2000, when rival Advanced Micro Devices filed a complaint that Intel's unfiar marketing practices were driving it out of the market. Intel was accused of offering illegal rebates to computer manufacturers that rebuffed its competitor.

A series of raids followed in 2007, when Intel was formally charged. Last year, the European Commission alleged that Intel offered rebates to a major European retailer if it sold only Intel-based personal computers.

Intel has denied the charges and describes its business practices as "lawful, pro-competitive and good for consumers". It is expected to appeal against the decision.

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