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ARTICLE · 21 MAY 2009

Rebates: What Can Companies Learn from the Intel Decision?

Mayer Brown
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As has already been widely reported, on 13 May 2009 the European Commission (the "Commission") announced that it had fined Intel Corporation €1.06 billion ($1.441 billion) for violating EC Treaty antitrust rules (Article 82 EC Treaty) on abuse of a dominant market position by engaging in illegal anticompetitive practices to exclude competitors from the market for Central Processing Unit computer chips (CPUs).

European UnionAntitrust/Competition Law
Kiran Desai
Kiran Desai
Margarita Peristeraki
Margarita Peristeraki
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Originally published May 19, 2009

Keywords: Intel, antitrust, dominant market position, anitcompetitive, Tomra.

As has already been widely reported, on 13 May 2009 the European Commission (the "Commission") announced that it had fined Intel Corporation €1.06 billion ($1.441 billion) for violating EC Treaty antitrust rules (Article 82 EC Treaty) on abuse of a dominant market position by engaging in illegal anticompetitive practices to exclude competitors from the market for Central Processing Unit computer chips (CPUs).

The Commission's more than 500 page decision is not currently available, and will not be for some time, but a few elements relevant to a company's consideration of its rebates scheme can be discerned from the information that is currently available. For a company that might be deemed to hold a dominant market position, determining whether or not a rebate it offers is anticompetitive is particularly challenging and complicated, despite the recent

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