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Intel Receives $536 Million Payment from EU Following Antitrust Fine Reversal, but Faces Antitrust Probe in China

Intel has been awarded a significant payout of $536 million (€515.55 million) from the European Commission after a prolonged legal battle over a 2009 antitrust fine. This payment stems from interest on an original $1.1 billion (€1.06 billion) penalty, which was largely annulled by the EU's second-highest court in 2022. The fine had been imposed on Intel for allegedly engaging in anti-competitive practices between 2002 and 2007, primarily using rebates to pressure computer manufacturers into avoiding chips from rival AMD.

However, the General Court of the European Union found major flaws in the European Commission's economic analysis in 2022, leading to the annulment of most of the fine. Intel was left with a reduced penalty of $386 million (€376 million). Following the ruling, Intel sought to recover interest on the initial sum, and the European Commission has now awarded the company $536 million in interest payments, marking a legal victory for Intel.

The case began in 2014 when Intel challenged the fine, and despite several twists and turns in the legal process, the 2022 court ruling effectively validated Intel’s position. The court concluded that the European Commission had failed to prove that Intel's rebate practices were detrimental to market competition. While this victory has relieved Intel of some financial burden, it also raises questions about the European Commission’s handling of competition law cases, particularly regarding the adequacy of its economic assessments.

Despite this win in Europe, Intel’s legal challenges are far from over. China has recently reopened antitrust investigations into several major U.S. tech companies, including Google, Nvidia, and potentially Intel. These probes are believed to be linked to rising trade tensions between China and the U.S. and could have serious implications for Intel’s operations in China, which is its largest global market for CPUs.

 Shenzhen eagle eye online Electronic Technology Co., Ltd.

China’s investigations into Google and Nvidia focus on concerns over their market dominance and anti-competitive behavior. Google is being scrutinized for allegedly disadvantaging Chinese smartphone manufacturers, while Nvidia is under investigation for breaching commitments made during its 2019 acquisition of Mellanox Technologies. Intel, although not officially confirmed, may soon face similar scrutiny.

If launched, the investigation could target Intel's business practices in China, where it holds a commanding share of the CPU market. With ongoing U.S.-China trade tensions, the timing of these probes suggests they could serve as a bargaining tool in broader negotiations between the two countries. Although Intel has not yet commented on the matter, the possibility of additional regulatory hurdles in China further complicates the company’s global strategy.

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