U.S. chipmaker Intel has received €515.55 million ($536 million) in default interest from the European Union (EU) following a prolonged legal battle over a €1.06 billion antitrust fine imposed in 2009, Reuters reported.
This development follows Intel’s successful appeal, which led to the fine being overturned in court.
Legal Victory and Financial Reimbursement
In 2022, Intel sued the European Commission for €593 million in default interest after convincing the General Court of the European Union to annul the original penalty. The Commission returned $1.2 billion to Intel in January 2024 but initially refused to reimburse the default interest. After continued legal efforts, Intel received its due interest compensation on November 6, 2024.
Ongoing Claims and Legal Precedent
Despite this partial reimbursement, Intel is pursuing an additional €593 million ($624 million) in interest payments. The company argues that the interest should be calculated based on the European Central Bank’s refinancing rate, initially set at 1.25% in May 2009 and later adjusted to 3.5% until February 2024. Intel’s case aligns with a precedent established by Europe’s top court, which mandates that late payment of interest will itself accrue additional interest.
Regulatory Scrutiny and Market Implications
The European Commission had originally penalized Intel for allegedly paying major PC manufacturers—HP, Acer, and Lenovo—to delay or halt rival chip products. While the bulk of the Commission’s findings were dismissed, a portion of Intel’s conduct led to a separate €376 million fine in 2023. This case underscores a growing trend of companies seeking legal recourse against regulatory fines, pushing the EU to ensure prompt reimbursement and fair interest calculations.
Future Outlook
As Intel continues to pursue additional compensation, this case sets a significant precedent for corporations challenging EU antitrust rulings. The outcome may influence future regulatory enforcement and the financial responsibilities of the European Commission when fines are overturned.
