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Policy · Government, Defense & Space

CCI fines Intel ₹27.38 crore for abusing dominance

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Date
Company
Intel
What it does
Semiconductor and microprocessor manufacturer
Kind
Policy
Amount
₹27.38 Cr
Founded
1968
Sector
Government, Defense & Space

What they do

Intel makes boxed microprocessors (BMPs) for computers sold worldwide

What happened

India's antitrust regulator fined Intel ₹27.38 crore for discriminatory warranty policies that limited consumer choice

Why it matters

The fine is 8% of Intel's average relevant turnover over eight years; the policy was discontinued in 2024

The details

  • India's Competition Commission of India (CCI) imposed a ₹27.38 crore fine on Intel for abusing its dominant position in the boxed microprocessor (BMP) market.
  • The violation was under Section 4 of the Competition Act, 2002, which prohibits abuse of dominance.
  • Intel's discriminatory warranty policy denied warranty in India for BMPs bought from authorised dealers outside India.
  • The policy was introduced in April 2016 and applied only to Indian customers.
  • No such policy existed in Intel's other markets like China and Australia.
  • The CCI found the policy limited consumer choice and caused appreciable adverse effect on Indian users.
  • Intel discontinued the policy in 2024, so the penalty was reduced accordingly.

The bigger picture

  • The fine is 8% of Intel's average relevant turnover for the eight years the policy was in place.
  • Other big tech companies have faced similar CCI fines: Google ₹2,200 crore in 2022, Meta ₹213.14 crore in November 2024.
  • Apple is also under CCI probe and has moved the Delhi High Court to stop the regulator from seeking its global financial records.

About the business

  • Intel designs and manufactures semiconductors and microprocessors for computers and servers.
  • Its boxed microprocessors (BMPs) are sold as retail products through authorised distributors.
  • Intel operates in over 60 countries including India, China, and Australia.
  • The company earns revenue from chip sales, licensing, and related services.

The deal

Type
penalty

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