In a significant legal victory, Intel Corporation (INTC) has successfully defended itself against a €1.06 billion ($1.14 billion) fine levied by the European Union. The EU’s highest court, the European Court of Justice (ECJ), on Thursday, dismissed the Commission’s appeal to reinstate the fine, effectively concluding a 15-year legal battle.
The controversy arose from allegations that Intel engaged in anticompetitive practices within the x86 central processing unit (CPU) market. The European Commission, the EU’s executive body, had initially imposed the record fine in 2009, accusing Intel of abusing its dominant position by providing rebates to manufacturers on the condition that they primarily purchased x86 CPUs from Intel. They also alleged that Intel paid manufacturers to delay or cancel the launch of products featuring rival chips.
Intel vigorously contested these claims, leading to a lengthy legal process. In 2022, the General Court of the European Union ruled in favor of Intel, annulling the fine. The court found the Commission’s antitrust analysis insufficient to prove that the rebates had harmed competition. Undeterred, the Commission appealed the decision and imposed a smaller fine of €376.36 million.
The ECJ’s recent ruling, however, dismissed the Commission’s appeal, confirming the General Court’s decision and making Intel’s victory final. While this is a major win for Intel, the company still faces a smaller fine for allegedly paying manufacturers like HP, Acer, and Lenovo to delay rival CPUs between 2002 and 2006. Intel is currently challenging this reduced fine.
This legal triumph arrives at a pivotal moment for Intel, as the company awaits crucial U.S. chip subsidies to support its semiconductor production initiatives. The company’s stock price reacted positively to the news, closing up 0.62% at $22.12 on Thursday. This victory strengthens Intel’s position as a leader in the global semiconductor industry and underscores its commitment to fair competition in the chip market.