European Commission’s Record-Setting Fine on Intel: What It Means For Business

Executive Summary

The European Commission imposed today on Intel the highest fine ever levied (€1.06 billion or approximately $1.45 billion) for a violation of Article 82 of the EC Treaty, which prohibits abusive conduct by dominant firms. The Commission's 542-page decision (which has yet to be released) is likely to be important for several reasons:

(1) The decision implicates controversial issues regarding the permissible use of rebates, discounts, and promotional payments by firms with leading market positions, including the conditions under which such conduct may be deemed an "exclusive dealing arrangement," and in which above-cost pricing conduct may be considered anticompetitive;