Intel could face another EU antitrust fine, despite last year ending its court battle against a €1.06 billion fine imposed 14 years ago.
intel Last year it convinced Europe’s second highest court to quash a fine imposed by the European Commission in 2009 for giving rebates to four computer makers for buying most of their chips from the company rather than a competitor modern micro devices.
“The Court’s January 2022 decision did not overturn EK’s 2009 finding that Intel made payments to prevent the sale of certain competing products, and in January 2023 EK terminated its administrative proceeding to impose a fine on Intel based on of this alleged conduct,” the company said in a Jan. 26 filing.
“Given the status of the proceeding and the nature of this proceeding, we are unable to reasonably estimate the potential loss or range of losses that could result from this matter,” it said.
Companies risk fines of up to 10 percent of their global turnover for violating EU antitrust laws.
Recently Intel announced sweeping cuts in employee and executive pay after releasing a lower-than-expected sales forecast due to a loss of market share to competitors and a downturn in the PC market. Middle-level employees will have their base pay cut by 5 percent, while chief executive Pat Gelsinger will take a 25 percent pay cut. However, the company did mention that there would be no pay cuts for the company’s hourly wages, said a person familiar with the matter who was not authorized to speak publicly.
intel Spokesman Addy Burr said in a statement that the “changes are designed to have a greater impact on our leaders and will help support investments and the overall workforce.”
© Thomson Reuters 2023
