On June 20, 2020, Reuters reported that semiconductor giant Intel has filed a case with the European Commission seeking payment of interest on a fine it paid ten years ago but received the refund recently. This conviction forced the firm to pay one billion euros.
Intel convicted in 2009, acquitted in 2022
In 2009, Intel was ordered to pay a fine of one billion euros. The European Commission considered that the firm had been guilty of having abused its dominant position on the market for PC processors.
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According to her, Intel would have granted discounts to computer manufacturers if they supplied the vast majority (or all) from them, would have paid a large distributor to sell only computers equipped with its processors , and would have made payments for the benefit of certain manufacturers so that they delay or cancel the launch of PC lines equipped with AMD components.
Intel paid the fine to the European Commission, but appealed this decision to the European Court of Justice. More than twelve years after this conviction, the EU court acquitted Intel and therefore canceled the fine. Justice considered that the analysis carried out by the European Commission was not complete and did not allow ” to establish to the requisite legal standard that the rebates at issue were capable or likely to have anti-competitive effects “.
After repayment of the fine, Intel claims interest over 12 years
Since it had already paid the fine, Intel was able to recover the amount thereof. However, the firm wishes to go further and claims to collect the interest unfairly lost according to it. Based on an interest rate equivalent to the refinancing rate (key rate) of the European Central Bank (ECB), which was 1.25% as of May 2009, Intel is asking for an additional 593 million euros. According to the company, this rate should be increased to 3.5% from August 2009 to February 2022, the month in which Intel was reimbursed.
Intel is fully within its rights since a case law authorizes companies to claim the payment of interest on the fines reimbursed in the context of antitrust charges that have proven to be false. In addition, the technological giant has filed this appeal, because the Commission refuses to pay it more than 38 million euros in interest.
Other companies have seen their fines canceled by the European Court of Justice: this is the case of Qualcomm, which has also been reimbursed a billion dollars, and which could very soon make the same request as Intel vis- against interest. It is this same court that will soon have to rule and validate a final estimate of the interest due.