CCI finds no violation of fair trade norms by Intel

Fair trade watchdog CCI today ruled that global chip maker Intel Corp did not abuse its dominant position in the microprocessors market, bringing an end to the almost three-year old case.
In a relief for Intel, the Competition Commission of India (CCI) concluded that it had "not restricted and limited the market by foreclosing the distribution network to its competitors."
Intel did not deny access to its competitors in the microprocessor market nor had it "imposed supplementary conditions or leveraged its dominant position in the market of high-demand products in the market for low-demand products," among others, according to the ruling.

"Since no case is made out against Intel, either under the provisions...Of the (Competition) Act, the matter relating to this information is disposed of accordingly and the proceedings are closed forthwith," the CCI noted.
ESYS Information Technologies, a non-exclusive independent distributor for designated products of Intel in India, had filed the complaint against US-based Intel Corp as well as Hong Kong-based Intel Semiconductor and Intel Technology India.
It had also alleged that Intel imposed anti-competitive agreements and indulged in unfair pricing practices, thereby denying market access.

The complaint against Intel and the two related entities was filed with the CCI in August 2011, while the probe was ordered in December that year. The watchdog's investigation arm -- Director General -- submitted its report in June 2013.

It was alleged that Intel abused its dominant position in the market of microprocessors, mainly used in mobiles and computer devices.
The Commission noted that even though Intel is a dominant enterprise in the market for desktop PCs, mobiles and servers, the company's alleged conduct is not abusive in terms of any of the provisions of the Competition Act.
"...The alleged pricing policy of Intel does not amount to secondary line price discrimination and has not resulted in foreclosure of any of its downstream customers," the order said.
The allegation regarding charging of unfair and discriminatory prices by Intel in violation of competition norms does not stand established, it added.