Intel loses appeal against European fine for obstructing AMD

Intel has lost its appeal against the European Commission’s decision to impose a €1.06 billion fine for abuse of a dominant position. The European Court of Justice rejected Intel’s claims that the fine was disproportionate.

The ruling represents a defeat for Intel in the chip giant’s battle against the European Commission’s 2009 antitrust fine. The committee considered it proven that Intel had abused its dominant position and had thwarted competitor AMD in various ways. For example, Intel offered computer manufacturers such as HP, Lenovo and Dell discounts if they chose Intel, and the Media Markt is also said to have had a lucrative agreement with Intel to place Intel systems on the shelves in particular.

None of Intel’s arguments that the fine is disproportionate to the allegations makes sense, the General Court of the European Union ruled. “On the contrary”, the decision states, “it can be considered that the fine is proportional in view of the facts of the case.”

The record fine of 1.06 billion euros from 2009 corresponded to 4.5 percent of the company’s worldwide sales for 2008. Intel has always labeled the fine as “severely disproportionate” and the company argued that there was insufficient evidence for the allegation that the rebates were illegal and significantly affected AMD’s position. The General Court of the EU also rejected these last claims.

Intel can now refer the matter to the Court of Justice of the European Union, but then it can only concern the interpretation of European law.