Brussels, May 14: The European Union (EU) slapped an antitrust fine of 1.06 billion euros on Intel Corp and has directed it to stop using illegal rebates to fight competition.
After eight years of investigation, EU found that intel indulged in giving rebates to computer makers that buy all or parts of the chips from Intel, in an effort to fight competition.
Advanced Micro Devices Inc (AMD) originally filed the antitrust complaint with the EU which dished out a penalty that is the highest recorded antitrust fine. This will only add to the woes of world's biggest chip maker amid the decreased computer sales due to the global economic crises.
EU has revealed that Intel gave rebates from 2002 to 2005 to computer makers on a condition that they brought at least 95 per cent of chips for PCs from Intel. This was topped off 'restrictive conditions' for the remaining per cent 5, supplied by AMD.
Bruce Sewell, Intel"s general counsel in an telephone interview said that the company will appeal the commission"s decision to the EU courts in Luxembourg.