The Competition Commission of India (CCI) has imposed a fine of Rs 27.38 crore on Intel Corp for indulging in anti-competitive practices with respect to India-specific warranty policy for its boxed microprocessors. The penalty has been imposed on the company for abusing its dominant position in the market for Boxed Micro Processors (BMPs) for desktops in India.
In a statement on Thursday, the CCI said the India-specific warranty policy was discriminatory in comparison with Intel's warranty policies in China, Australia and rest of the world. The Commission also found the policy to have limited the choice of consumers and parallel importers, thereby causing an appreciable adverse effect on Indian consumers.
Considering the fact that the India-specific warranty policy was in place for eight years, the regulator imposed the penalty translating to 8 per cent of the average relevant turnover of Intel. “However, considering the mitigating factors, including the discontinuation of the aforesaid policy w.e.f. 01.04.2024, the Commission reduced the amount and imposed a penalty of Rs 27.38 crore on Intel,” the release said.
Further, the CCI has directed Intel to widely publicise the withdrawal of the impugned India-specific warranty policy and submit a compliance report.
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