Intel Challenges $421 Million EU Antitrust Fine, Calls It Disproportionate and Unfair

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Intel returned to the European General Court on Friday to contest a €376 million ($421.4 million) antitrust fine imposed by the European Commission, arguing the penalty is unjustified, disproportionate, and based on a limited scope of conduct that doesn’t support broad monopoly claims.

The fine stems from alleged “naked restrictions”—direct payments Intel made to HP, Acer, and Lenovo between 2002 and 2006 to delay or halt rival AMD product launches. These practices were deemed exclusionary but narrower than previously argued by regulators.

Background:

  • The case began in 2009, when the Commission fined Intel a then-record €1.06 billion for excluding AMD from the x86 chip market.

  • In 2022, the General Court overturned the fine, stating the rebate-based findings lacked legal clarity.

  • However, the court upheld one part of the decision—regarding the direct payments to PC manufacturers—leading the Commission to re-impose a reduced €376 million fine in 2023.

Intel’s Argument:

Representing Intel, lawyer Daniel Beard said:

  • The payments in question were “narrow, tactical moves”, not part of a comprehensive market foreclosure strategy.

  • The Commission wrongly equated these limited practices with more aggressive pricing conduct that was already overturned.

  • The new fine was “wholly disproportionate and unfair,” particularly given the scale and timeframe of the actions.

“These restrictions don’t sustain a market-wide foreclosure theory,” Beard told the panel of three judges.

European Commission’s Defense:

Commission lawyer Pedro Caro de Sousa defended the penalty, stating:

  • The fine was based on clear guidelines and conservative calculations.

  • It reflects only 1% of Intel’s revenue at the time, and about 0.5% of current turnover.

  • The conduct was serious and damaging, regardless of its scope.

“The Commission correctly applied its fining guidelines… and opted in Intel’s favour when in doubt,” de Sousa added.

What’s Next:

  • Both Intel and the Commission have asked the General Court to finalize the size of the fine.

  • A ruling is expected in the coming months in the case officially listed as T-1129/23 Intel Corporation v Commission.

The outcome may influence how legacy antitrust cases involving tech companies are handled in Europe, particularly when penalties are recalculated years after initial rulings.