Intel Hit Again: EU Re-imposes €376M Fine Over Market Dominance Allegations
Portfolio Pulse from Anusuya Lahiri
The European Commission has re-imposed a fine of €376.36 million on Intel Corp (NASDAQ:INTC) for allegedly abusing its dominant position in the x86 CPU market, affecting competitors like Advanced Micro Devices, Inc (NASDAQ:AMD). The initial fine of €1.06 billion was levied in 2009 but was partially annulled in 2022. The new decision focuses on Intel's 'naked restrictions' between 2002 and 2006, where it reportedly paid manufacturers like Hewlett Packard Enterprise Co (NYSE:HPE), Acer, and Lenovo to limit the launch and distribution of products containing competitors' x86 CPUs.
September 22, 2023 | 2:52 pm
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NEGATIVE IMPACT
Intel faces a re-imposed fine of €376.36 million by the European Commission for alleged market dominance abuse.
The re-imposition of a significant fine by the European Commission could negatively impact Intel's financials in the short term, potentially leading to a decrease in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Intel's alleged market dominance abuse could have affected competitors like Advanced Micro Devices.
While the news directly pertains to Intel, it also indirectly affects AMD as a competitor. However, the impact on AMD's stock price is uncertain as the news does not provide specific details on how AMD was affected.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Intel reportedly paid manufacturers like Hewlett Packard Enterprise to limit the launch and distribution of products containing competitors' x86 CPUs.
The news mentions that Intel paid HPE to limit the launch of products containing competitors' CPUs. However, the impact on HPE's stock price is uncertain as the news does not provide specific details on how HPE was affected.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50