Intel Escapes Historic $1.45 Billion EU Antitrust Fine but Faces New $400 Million Penalty

Over 15 years ago, Intel's commanding share in the processor market was unmistakable, dominating the scene with a significant grip. In 2009, the European Union slapped Intel with a record fine of €1.06 billion (approximately $1.45 billion at the time) after an investigation revealed Intel's market abuses to edge out its main competitor, AMD. Intel was found to have made payments to major manufacturers like Acer, Dell, HP, Lenovo, NEC, and various retailers, incentivizing them to delay, cancel, or outright avoid selling products equipped with AMD processors.

At that time, Intel's market share in Europe alone soared to 80%, showcasing its formidable presence and influence over OEMs, whether willingly or under pressure, to cooperate in its monopolistic practices.

EU's Highest Court Overturns $1.45 Billion Antitrust Fine Against Intel, Imposes a New $400 Million Penalty

Despite facing a record-breaking fine, Intel has spent the ensuing years appealing the decision. This week, the European Union's highest court overturned the previous decision by the European Commission, effectively siding with Intel. The court disagreed with the Commission's stance that Intel's conditional rebates to partners carrying its chips were anti-competitive.

This ruling overturns the antitrust case from 15 years ago, freeing Intel from the obligation to pay the €1.06 billion fine. However, this does not signify the end of EU's sanctions against Intel.

In a separate antitrust case in 2022, the EU imposed a new penalty of approximately $400 million on Intel for its illegal payments to OEMs to delay or halt the production of AMD products. Intel did not appeal this new fine, effectively conceding to the charges.