Intel Faces $3.3M Penalty Over India-Only Processor Warranty Policy
India’s Competition Commission fined Intel INR 27.38 crores ($3.3M) for enforcing a boxed microprocessor warranty policy that favoured authorized local distributors from April 2016 to April 2024. The regulator ruled the India-specific policy limited consumer choice and parallel imports compared to Intel’s global warranty terms.
1. Penalty Imposed by CCI
India’s Competition Commission imposed a penalty of INR 27.38 crores (about $3.3M) on Intel for violating Section 4 of the Competition Act, 2002, after finding the chipmaker dominant in the boxed desktop microprocessor market. The fine corresponded to 8% of average relevant turnover over eight years, later reduced due to Intel’s policy withdrawal.
2. Discriminatory Warranty Policy
Intel’s April 25, 2016 amendment limited warranty service to boxed processors purchased from authorized Indian distributors, diverging from warranty terms offered in China, Australia and other regions. The policy was found to restrict parallel importers and reduce consumer choice, prompting the antitrust action.
3. Compliance and Reporting Requirements
The CCI directed Intel to publicize the withdrawal of the India-specific warranty policy and submit a compliance report confirming adherence. Intel discontinued the policy effective April 1, 2024, which served as a mitigating factor in reducing the final penalty amount.