Intel Gets Reprieve in $1.17 Billion Lawsuit by EU

By S. Rina, | October 21, 2016

An court aide has said that the case between the EU and Intel needs to be revisited.

An court aide has said that the case between the EU and Intel needs to be revisited.

The European Union (EU) has been dealt a blow in its legal tussle with US technology giant Intel. An EU court aide said that the case needs to be revisited.

The latest twist may have a long-term impact on the way such disputes are handled in the future. Currently, major tech companies including Google and Apple are involved in business disputes with the EU.

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Advocate Nils Wahl said that it needs to be ascertained whether Intel's actions had an adverse effect on the competition. In a non-binding recommendation, Wahl said that Intel's appeal against the fine should be upheld. He also stated that the case should be sent back to the General Court for a new review.

Intel was fined for allegedly stifling competition using various tactics. These tactics included offering rebates to PC makers such as Lenovo and Dell for buying a bulk of their chip requirements from Intel. The company allegedly also paid German retailer Media Saturn Holding to only stock computers containing Intel inside.

Intel was fined $1.17 billion. This remains the largest fine ever imposed on a single company for an EU antitrust infringement.

Intel's challenge against the fine two years ago was rejected by the General Court. At that time, the court said that European Commission had not acted excessively as its fine against Intel only amounted to 4.15 percent of the company's turnover in 2008, whereas the fine could have been as high as 10 percent.

The European Court of Justice (ECJ) is set to make a ruling on the case in the next few months. 

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