Intel fined $3 million by India’s antitrust regulator over discriminatory CPU warranty policy — says Intel abused its dominant position in the boxed processor m

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Intel fined $3 million by India’s antitrust regulator over discriminatory CPU warranty policy — says Intel abused its dominant position in the boxed processor m

The Competition Commission of India alleges Intel abused its dominant position in the boxed processor market.

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Intel has been fined a sum of INR 27.38 crores (approximately $3.02 million) by the Competition Commission of India (CCI) for allegedly abusing its dominant position in the boxed microprocessors (BMP) market. According to an order issued under Section 27 , India’s antitrust regulator found that Intel India violated Section 4 of the Competition Act of 2002 by implementing unfair warranty policies in the country.

As per a complaint filed by Matrix Info Systems Private Limited, Intel made changes to its warranty policies in India starting April 25, 2016, under which the chip-maker honored warranty support in India only for boxed processors bought from Intel-authorized distributors within the country. Due to this change, Intel denied warranty benefits to customers who purchased their processors from authorized sellers in other countries and were asked to claim the warranty in the country where the product was originally purchased.

Following the evidence and investigation, the CCI concluded that Intel holds a dominant position in the market for boxed desktop processors within India. It also called Intel’s India-specific warranty policy ‘discriminatory’ when compared to its warranty practices in other countries worldwide including China and Australia. The Commission also highlighted that the change in policy limited the choice of consumers and parallel importers, ultimately harming Indian consumers.

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