American chipmaker Intel is in a heated legal battle with European Union (EU) antitrust regulators over a hefty fine of €376 million ($421.4 million). The penalty, imposed nearly two years ago, accuses Intel of blocking competitors from entering the market. On Friday, Intel argued in court that the fine was excessive and unfair, pushing for it to be overturned.
This clash, reported by Reuters, stems from a long-running dispute dating back to 2009. Back then, the European Commission hit Intel with a record-breaking fine of €1.06 billion for hindering rival Advanced Micro Devices (AMD).
In 2022, Intel convinced the General Court, Europe’s second-highest court, to scrap that penalty. However, the court upheld one part of the original ruling, leading the EU to re-impose the reduced fine of €376 million.
Why the Fine? Key Accusations Against Intel
The EU claims Intel paid major companies like HP, Acer, and Lenovo between November 2002 and December 2006 to delay or stop rival products. These actions, termed “naked restrictions,” are seen as serious violations by antitrust authorities.
The EU argues the fine is fair, representing just 1% of Intel’s revenue in the last year of the violation. It also represents 0.5% of its current turnover.
Intel’s Defense: Limited Scope, Unfair Penalty
Intel’s lawyer, Daniel Beard, told a panel of judges that the EU had overstated the issue. He insisted there was no broad plan to block competitors from the entire x86 chip market.
Instead, these were small, tactical moves limited to specific companies. Beard called the fine “wholly disproportionate and unfair,” arguing it doesn’t match the scale of the violations.
What’s Next for Intel?
Both sides have urged the General Court to settle the fine amount. A decision is expected in the coming months. This case adds to Intel’s challenges, even after a recent win in 2024 when the EU’s top court annulled the original €1.06 billion penalty.
For now, Intel continues to fight for fairness in this ongoing dispute.