EU Court Reduces Intel’s Antitrust Fine by €140 Million

The General Court of the European Union has upheld a substantial antitrust fine against U.S. chipmaker Intel Corporation, but has reduced the penalty significantly. On December 10, 2023, the court confirmed the €376 million (approximately $438 million) fine initially imposed by the European Commission two years ago. However, it lowered the fine by €140 million, establishing a new total of €237,105,540.

The General Court, based in Luxembourg, stated that this revised amount better reflects “the gravity and duration of the infringement at issue.” The case stems from allegations that Intel engaged in anti-competitive practices to undermine rivals, particularly Advanced Micro Devices (AMD).

The European Commission originally levied the fine in 2023 after the court dismissed a previous penalty of €1.06 billion that had been issued in 2009. That earlier fine was related to accusations that Intel had blocked AMD’s market access through various means, effectively stifling competition in the semiconductor industry.

The case, identified as T-1129/23 Intel Corporation v Commission, highlights the ongoing scrutiny that major companies face from European regulators. The European Union has been particularly vigilant in enforcing competition laws to ensure fair market practices.

The implications of the court’s decision may extend beyond Intel, as it underscores the EU’s commitment to regulating competition in the technology sector, a field characterized by rapid innovation and significant market power held by a few large companies.

Intel, which has faced various legal challenges regarding competition in the past, must carefully consider its future strategies in light of this ruling. The reduced fine may offer some relief, yet the company remains under the watchful eye of regulatory bodies concerned with maintaining equitable competition standards.

As the technology landscape continues to evolve, the actions of the EU in this case may set important precedents for how antitrust laws are applied to global tech giants moving forward.