Intel fined €1bn

The European Commission has fined microprocessor-maker Intel more than €1bn (£900m) for violating European antitrust legislation, saying that the chip maker abused its dominant market-position to exclude competitors from the market for x86 central processing units (CPUs).

The commission has also ordered Intel to cease the illegal practices immediately.

The commission found that Intel engaged in two specific forms of illegal practice.

First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, of their x86 CPUs from Intel.

Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs.

Such rebates and payments effectively prevented customers - and ultimately consumers - from choosing alternative products.

Second, Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors' x86 CPUs and to limit the sales channels available for those products.