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Intel, Abuse of a Dominant Position and Massive Fine

By Bartolus

You've probably read the news already: Intel has been fined ?1.06 billion (US $ 1.43 billion) by the Commission for abusing its dominant position in breach of Article 82 EC. That is the largest fine ever imposed by the Commission on a single corporation.

Not much has been made public so far.

There's this press release and this memo giving a minimum of background.

It transpires that the Commission reproaches Intel, apart from being a very successful company for a poll indicating that the fine is unfair, see here), for doing two sorts of things:
- giving its customers illegal loyalty rebates, and
- by paying computer manufacturers and retailers to restrict the commercialisation of competitors' products, which means in practice AMD's products. (For AMD's take on the decision, see here).

It is a pity that the Commission does not think fit to give the reading public more information or even release a version of the decision. Nevertheless, a careful reading of the memo seems to indicate that because the fine represents only 4.15 % of Intel's turnover in 2008 - well below the cap of 10% of annual turnover set in Regulation 1/2003 - it could have been higher still.

Intel has denied breaking the law and announced its intention to seek judicial review.

Full post as published by EU Law Blog on May 17, 2009 (boomark / email).