The Intel Judgment: (Re)Balancing The Burden Of Proof

On January 26, the General Court (GC) of the European Union issued a judgment on remand,¹ annulling the ?1.06 billion fine that the European Commission (EC) had imposed on Intel in 2009.

Companies commonly use rebates to maximize sales. From an EU antitrust law perspective, such discount schemes are generally not problematic. However, dominant firms may sometimes apply discounts in a way that distorts competition, for example when they are applied in a discriminatory or arbitrary manner or if they provide de facto exclusivity to the supplier. In this respect, which rebates can be considered lawful has been the subject of much controversy. The traditional rigid, formalistic approach that the European courts used to adopt regarding rebates granted by dominant firms could often punish healthy competition on the merits.