Brussels: Intel said on Wednesday it would appeal against a European Commission decision to fine the US computer chip giant €1.06 billion ($1.45 billion) for abusing its dominant market power.
“Intel takes strong exception to this decision,” Intel president and chief executive Paul Otellini said in a statement after the commission ordered the Santa Clara, California-based company to pay the record fine.
“We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace — characterized by constant innovation, improved product performance and lower prices.”
“There has been absolutely zero harm to consumers. Intel will appeal,” he added.
The European Commission accused Intel of using rebates to squeeze rivals out of the market for computer processing units — the brains inside personal computers.
EU antitrust regulators also accused Intel of paying computer manufacturers to halt or put off the launch of products containing microchips competiting with Intel’s x86.
Intel also allegedly paid a major electronic retailer to stock computers with its chips.
“Intel never sells products below cost. We have however, consistently invested in innovation, in manufacturing and in developing leadership technology,” Otellini said.
“The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world’s leading volume manufacturer of microprocessors,” he added.
The Intel boss said that, despite the appeal, the company would work with the commission to ensure that it complies with its decision, pending a final judgment on the appeal.