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June 13, 2014

Intel Loses Appeal Over Antitrust Laws

Commission's Initial Ruling Maintained

Image courtesy of (Kittisak) / FreeDigitalPhotos.net

The General Court of the European Union has upheld a 2009 ruling by the European Commission relating to an Intel appeal on an antitrust fine.

intelThursday, the court upheld the commission’s finding that Intel had abused its dominant position by offering rebates to customers on the condition they buy all their x86 CPUs from the company. The court said Intel was wrong in trying to persuade OEMs like Hewlett-Packard and Dell to favor its processors over rival Advanced Micro Devices’ and that the huge fine of $1.4 billion was justified.

In a statement issued Thursday, the court said, “The General Court considers that none of the arguments raised by Intel supports the conclusion that the fine imposed is disproportionate. On the contrary, it must be considered that that fine is appropriate in the light of the facts of the case.”

Since the initial debate began, Intel has argued the facts, as reported by eweek, saying while its tactics may have been aggressive there were no violations of laws. The company argued that in court, unsuccessfully, but can now, if it so chooses, pursue another hearing before the Court of Justice of the European Union.

The fine was the highest the commission ever doled out and was determined, Computer World reports, based on the value of sales of x86 CPUs invoiced by Intel in the EU during the last year of the infringement.

“We are very disappointed about the decision. It’s a complex case which is reflected in the decision. We will begin evaluating the decision,” Intel spokeswoman Sophie Jacobs told Reuters.


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W. Brice McVicar is a staff writer for SiteProNews.