Intel Corporation (INTC) loses challenge against $1.4 billion EU fine
Intel Corporation (NASDAQ:INTC) lost a challenge against a record 1.06 billion euro ($1.44 billion) European Union fine that was handed out five years ago. Europe’s second highest court said that regulators did not act too harshly.
In 2009, the European Commission said Intel used anti-competitive measures against Advanced Micro Devices by giving rebates to PC makers like Dell, HP, NEC, and Lenovo for buying most of their chips from Intel.
The EU competition authority said that Intel also paid German retail chain Media Saturn Holding to stock only computers with its chips. The judges at the Luxembourg-based General Court said on Thursday that they backed the European Commission’s decision.
“The Commission demonstrated to the requisite legal standard that Intel attempted to conceal the anti-competitive nature of its practices and implemented a long term comprehensive strategy to foreclose AMD from the strategically most important sales channels,” stated the court.
The fine is equal to 4.15% of Intel’s 2008 turnover versus the possible maximum of 10%. Intel can still take the case to the Court of Justice of the European Union.
“We are very disappointed about the decision. It’s a complex case which is reflected in the decision. We will begin evaluating the decision,” added Intel spokeswoman Sophie Jacobs.
Samsung and Google both made settlements with the European Commission recently. The case was filed under: T-286/09, Intel vs Commission.