U.S. chipmaker Intel clashed with European Union antitrust regulators on Friday over a €376 million ($421.4 million) fine, arguing the penalty imposed nearly two years ago was excessive and unjust.
The dispute stems from a 2009 European Commission decision that fined Intel a record €1.06 billion for allegedly blocking rival Advanced Micro Devices (AMD) from the market. That ruling was largely overturned in 2022 by the General Court, the EU’s second-highest court.
However, the court upheld part of the original decision, finding that Intel made payments to computer makers HP, Acer, and Lenovo to delay or halt products using rival chips between 2002 and 2006. The Commission re-imposed a reduced €376 million fine based on those “naked restrictions,” which are seen by regulators as clear antitrust violations.
Intel is now seeking to annul that decision, arguing the violations were limited in scope and did not amount to a broad strategy to block competition in the x86 processor market.
“The Commission cannot sustain a finding that there was an overall strategy to foreclose competitors from the entire x86 chips market. These were narrow, tactical moves,” said Intel’s lawyer Daniel Beard, adding that the fine was “wholly disproportionate and unfair.”
EU lawyers defended the decision, saying the Commission had followed its own guidelines and even leaned in Intel’s favor in some assessments.
“The fine is clearly not disproportionate to the seriousness of Intel’s conduct,” said Pedro Caro de Sousa, representing the Commission. He noted the penalty represented just 1% of Intel’s revenue in the final year of the violation period and around 0.5% of current turnover.
Both parties have requested the court to rule on the appropriate size of the fine. A decision is expected in the coming months.
