Intel wins fight over $1.3 bn antitrust fine

EU top court rules Intel rebate claims need to be reviewed

Intel won a boost in its eight-year fight with the European Union over a $1.06-billion ($1.26 billion) fine in a case that could have ramifications for a list of disputes involving US tech giants including Google and Apple. The EU’s top court ruled that Intel’s appeal had to be reexamined by a lower tribunal, criticising judges for failing to properly analyse the economic aspects of the case in its 2014 decision to reject the chipmaker’s initial challenge.

The lower court “was required to examine all of Intel’s arguments” regarding a test to check whether the rebates used by the company was capable of harming competition, the EU Court of Justice in Luxembourg said on Wednesday. The lower tribunal -the EU General Court -has to examine “whether the rebates at issue were capable of restricting competition.”

Intel is among the few companies to have continued a battle against a European Commission fine all the way to the top EU court. The Brussels-based antitrust regulator accused the company of using discounts to hurt Advanced Micro Devices, a decision backed by a lower EU court in 2014.

The commission hasn’t lost many antitrust cases over the last 20 years. Knowing that they face likely defeat, most companies being probed for monopoly abuse tend to cave in. They agree to a binding deal to change their behaviour, shutting down the EU investigation early to avoid fines or to get a reduced penalty.

Qualcomm could be the most directly affected by the ruling. The EU is probing whether the company unfairly paid Apple to only use Qualcomm chipsets in its products. Google, under investigation for inducing phone makers to use its Android software, will also be watching closely.

“This ruling introduces important clarifications of the role of the General Court when assessing commission decisions,” said Agustin Reyna, senior legal officer at European consumer organisation BEUC.

At a glance

• Intel is among few firms to have continued a battle against a European Commission fine all the way to the top EU court
• The commission hasn’t lost many antitrust cases over the last 20 years
• Qualcomm could be the most directly affected company by the ruling

Bloomberg