Intel grounds for EU appeal revealed

Intel is to argue that the European Commission provided insufficient proof of wrongdoing when it appeals the record antitrust fine imposed by commissioners in May.

The details of Intel’s appeal asking for an annulment of the decision or a reduction of the  €1.06bn ($1.5bn) fine have been revealed in the official journal of the European Union.

Intel’s lawyers will argue that the EC failed to establish that Intel’s discounts to its customers shut out competition, namely from its rival AMD.

They will also say that there was insufficient proof that Intel’s rebates were conditional upon its customers buying all or nearly all of their microprocessors from Intel. The commission had also failed to establish a link between the discounts and customers’ decisions not to buy from a competitor, they allege.

Further, they argue the Commission failed to prove that Intel engaged in a long-term strategy to shut out competitors. Procedural flaws are also alleged.

On the fine, Intel’s lawyers say it is “manifestly disproportionate given that the Commission fails to establish any consumer harm or foreclosure of the competitors.”

There is no date set for the appeal and, in the meantime, Intel will be looking for a replacement for its general counsel, Bruce Sewell. In a statement on Monday, Intel said Mr Sewell had decided to leave the company “to pursue other opportunities”.

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