Intel Appeals $420 Million Fine Over AMD Dealings, Calls EU Penalty Excessive

Intel (INTC) challenged the European Commission's fine of €376 million ($420 million) in court on Friday, arguing that it is “disproportionate” and “unlawful,” and asked for a full reversal. 

According to a Reuters report, Intel’s lawyers said that the payments to HP, Acer, and Lenovo were “narrow” and “tactical” and not part of a broad strategy to dominate the x86 processor market.

They also argued that the impact of these violations was not comparable to the rebate practices that the court had previously overturned. 

The European Commission reportedly argued that it had followed proper procedures and even gave Intel “the benefit of the doubt” in some areas.

Its lawyer said the fine is “modest,” amounting to just 1% of Intel’s annual revenue at the time of the violations and only 0.5% of Intel’s current revenue. 

The clash between the EU and Intel has been ongoing since 2019, when the European Commission first fined Intel €1.06 billion for using illegal tactics to block Advanced Micro Devices (AMD). 

The alleged tactics included paying computer makers like HP, Acer, and Lenovo to delay or avoid launching products with AMD chips. 

In 2022, Intel successfully appealed most of that fine. The EU’s General Court overturned much of that decision, saying that the European Commission had not proven that Intel’s rebates were harmful enough to justify the full penalty. 

However, the court upheld part of the original decision, specifically the payments dubbed “naked restrictions” — direct payoffs to manufacturers that suppressed AMD’s market access. As a result, the Commission reissued a reduced fine of €376 million.

Both sides have asked the court to settle the issue definitively, including determining the appropriate fine amount. According to Reuters, a final ruling is expected in the coming months.

Intel’s stock edged 0.14% higher in pre-market trade. The shares have gained 6.5% this year but are down more than 30% over the past  12 months. 

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Read also: Fortnite Pulled From iOS Worldwide In Renewed Apple-Epic Games Clash

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