• Intel’s EU antitrust battle advances: Regulator’s analysis faulted.
• Intel’s rebate case: $1.2 billion fine overturned, awaiting CJEU decision.
• CJEU adviser: Recommends dismissing grounds in Intel’s appeal. Ruling imminent.

Intel, the U.S. chipmaker, received a boost in its fight against a massive 1.06 billion euro ($1.2 billion) fine imposed by the European Union (EU). The case, dating back to 2009, revolves around allegations that Intel tried to stifle competition from Advanced Micro Devices by providing rebates to major computer manufacturers such as Dell, Hewlett-Packard (HP), NEC, and Lenovo.

The European Commission had initially fined Intel for its rebate practices, deeming them anti-competitive. However, a lower tribunal overturned the fine in 2022. The EU competition enforcer appealed this decision, leading to the case reaching the Court of Justice of the European Union (CJEU).

In a significant turn of events, the CJEU Advocate General Laila Medina, focusing on two of the six grounds of appeal, found fault with the economic analysis conducted by EU regulators. She recommended that the court dismiss both grounds, stating, “The court should confirm that the Commission erred in applying the AEC test with respect to HP and Lenovo.” The AEC test evaluates the ability of equally efficient competitors to compete despite rebates offered by a dominant company.

While Advocate General opinions are non-binding, they often influence the court’s final decision. The CJEU is expected to rule on the case in the coming months.

This development marks a crucial step for Intel in its quest to overturn the hefty fine imposed by the EU. The company’s legal team argues that regulators must demonstrate the anti-competitive effects of discounts before sanctioning them. If the CJEU aligns with the Advocate General’s recommendation, it could have broader implications for how antitrust cases involving rebates and discounts are assessed in the EU.

In a parallel move, the European Commission reopened the case last year, issuing a 376-million-euro fine to Intel for alleged illegal payments made between 2002 and 2006 to HP, Acer, and Lenovo to hinder or delay rival products. The final outcome of the case, officially titled C-240/22 P Commission v Intel Corporation, awaits the CJEU’s decision.

[embedpost slug=”/samsung-galaxy-s23-s23-ultra-latest-pta-tax-price-in-pakistan-jan-2024/”]