Intel demands $625 million in interest from the EU after antitrust fine is overturned

midian182

Posts: 7,913   +82
Staff member
What just happened? Intel is demanding that the European Commission competition watchdog hand over $624 million in interest charges following the company's successful appeal against a $1.2 billion antitrust fine earlier this year.

In January, a European court ruled in support of Intel over its appeal of the 1.06 billion Euros ($1.2 billion) fine that the European Commission levied against it in 2009. The case revolved around Intel allegedly paying manufacturers, including Dell, HP, and Lenovo, to favor its processors over AMD's from 2002 to 2007 by giving them special treatment in the form of rebates. The Commission returned the $1.2 billion payment to Intel after its court defeat.

Now, five months after that ruling, Intel has applied to the EU General Court for "payment of compensation and consequential interest for the damage sustained because of the European Commission's refusal to pay Intel default interest."

While the amount Intel is demanding represents more than half the original fine, the company says the claim is based on an interest rate equivalent to the European Central Bank's refinancing rate of 1.25% when the penalty was handed down in May 2009, and this should be increased to 3.5% from August 2009 to February 2022.

Intel isn't going to accept any delays by the Commission, either. It has asked the court to impose additional interest on any late payment of the interest charges.

Reuters notes that Intel is taking advantage of a ruling by Europe's top court last year that ordered the EU executive to pay default interest on reimbursed fines in annulled antitrust cases.

Despite the case raging on for over a decade, it still isn't over. The European Commission is now in the process of appealing the court's decision to overturn the fine.

h/t: The Register

Permalink to story.

 

Irata

Posts: 2,123   +3,664
I still cannot understand how the court could overturn this. There was clear evidence of their wrongdoing. Also, Europe was not the only region where they were found guilty or had to accept a settlement.

Makes you wonder if some judges will have an extra nice retirement.
 

Bp968

Posts: 252   +180
The EU antitrust group is just a mafia designed to pillage money from large foreign companies. In this cass they collected the money back when it was really valuable and when investments were clombing like crazy and are now handing the money back after massive inflation and after the money is worth significantly less than the 1.2b it was originally.
 

Endymio

Posts: 1,517   +1,458
How did this happen to begin with? There were so many companies that admitted to being complicit in Intel's scheme.
An easy answer to that one: there was nothing illegal nor anti-competitive in Intel's actions. In fact, during the period in question, AMD actually gained market share and became more competitive.
 

ScottSoapbox

Posts: 334   +594
The EU antitrust group is just a mafia designed to pillage money from large foreign companies.
All government is like the mafia.

Taxes are taken under threat of violence and taking your stuff anyway.

If anyone else does what government does every day they are criminals. The difference is perceived legitimacy of their monopoly on violence and right to X percentage of everything you make.
 

Avro Arrow

Posts: 2,373   +2,888
TechSpot Elite
All government is like the mafia.

Taxes are taken under threat of violence and taking your stuff anyway.

If anyone else does what government does every day they are criminals. The difference is perceived legitimacy of their monopoly on violence and right to X percentage of everything you make.
The difference being that Europe has the highest average standard of living in the world so they're doing more right than anyone else.
 

Avro Arrow

Posts: 2,373   +2,888
TechSpot Elite
The EU antitrust group is just a mafia designed to pillage money from large foreign companies. In this cass they collected the money back when it was really valuable and when investments were clombing like crazy and are now handing the money back after massive inflation and after the money is worth significantly less than the 1.2b it was originally.
Well they do a damn good job of preventing monopolies in Europe so unlike in the USA, it's a mafia that works.
 

Endymio

Posts: 1,517   +1,458
The difference being that Europe has the highest average standard of living in the world so they're doing more right than anyone else.
  • Having lived in several areas of Europe, I didn't need statistics to dispute that. But here they are anyway:

  • Euro Area GDP per capita : $37,712,
  • United States · GDP per capita : $63,544