COMPETITION COMMISSION SLAPS RS 27 CR FINE ON COMPUTER CHIP MAKER INTEL CORP FOR UNFAIR BUSINESS PRACTICES

 COMPETITION COMMISSION  SLAPS RS 27 CR FINE ON COMPUTER CHIP MAKER INTEL CORP FOR UNFAIR BUSINESS PRACTICES

The Competition Commission of India (CCI) has fined Intel Corporation ₹27.38 crore for abuse of dominant position in the market for boxed microprocessors used in desktops.

WHAT HAPPENED?

•     WARRANTY RESTRICTION:

In 2016, Intel introduced an India-specific warranty policy that limited warranty coverage only to products purchased from authorized Indian distributors.

•     DISCRIMINATION:

This policy was different from Intel’s global warranty practices in countries like China and Australia, where consumers had broader coverage.

•     LEGAL FINDING:

CCI ruled that this amounted to anti-competitive conduct under Section 4 of the Competition Act, as it unfairly disadvantaged Indian consumers.

•     PENALTY:

Intel must pay ₹27.38 crore, reinforcing that global corporations must align their policies with Indian competition law.

The penalty has been imposed on the company for abusing its dominant position in the market for Boxed Micro Processors (BMPs) for desktops in India.

WHY IT MATTERS

•     For Consumers: Indian buyers of Intel chips may now expect fairer warranty terms, closer to global standards.

•     For Competitors: Other chipmakers like AMD could benefit if Intel’s policies are seen as restrictive, potentially shifting consumer trust.

LEARNING LESSONS

This case highlights how consumer protection and competition law are becoming more assertive in India’s fast-growing tech sector.

EARLIER CASE LAWS BY CCI FOR MARKEK ABUSE

 

KEY TAKEAWAYS

•     PATTERN:

Most cases involve abuse of dominant position in markets where companies hold significant control (tech, real estate, energy, automotive).

•     IMPACT:

Penalties are often accompanied by directions to change policies or agreements to restore fair competition.

R V SECKAR, FCS, LLB 79047 19295