U.S. chipmaker Intel (INTC) lost its appeal against an EU antitrust fine of 376 million euros ($438 million) that was levied two years ago for impeding competitors.
However, on Wednesday, Europe's second-highest court reduced the fine by a third. After the tribunal overturned its 2009 sentence of 1.06 billion euros for obstructing Advanced Micro Devices, the European Commission, which enforces EU competition, levied the fine in 2023.
Between November 2002 and December 2006, Intel paid HP (HP), Acer, and Lenovo (0992.HK, LNVGF, LNVGY) 376 million euros to stop or postpone competing goods.
Regulators typically disapprove of such payments, which are referred to as "naked restrictions." "The General Court upholds the Commission's 2023 decision against Intel but reduces the fine by approximately 140 million euros," the tribunal in Luxembourg declared. According to the judges, a fine of 237 million euros is more reasonable given the seriousness and length of the violation.
They cited the comparatively small number of machines impacted by Intel's limitations and the 12-month interval between some of those anti-competitive actions.
On legal issues, the Commission and Intel may file an appeal with Europe's highest court, the EU Court of Justice. T-1129/23 Intel Corporation v. Commission is the case. $1 is equivalent to 0.8593 euros.
