Intel Spars with EU Regulators Over $421.4 Million Antitrust Fine 

Intel's logo is pictured during preparations at the CeBit computer fair, which will open its doors to the public on March 20, at the fairground in Hanover, Germany, March 19, 2017. (Reuters)
Intel's logo is pictured during preparations at the CeBit computer fair, which will open its doors to the public on March 20, at the fairground in Hanover, Germany, March 19, 2017. (Reuters)
TT
20

Intel Spars with EU Regulators Over $421.4 Million Antitrust Fine 

Intel's logo is pictured during preparations at the CeBit computer fair, which will open its doors to the public on March 20, at the fairground in Hanover, Germany, March 19, 2017. (Reuters)
Intel's logo is pictured during preparations at the CeBit computer fair, which will open its doors to the public on March 20, at the fairground in Hanover, Germany, March 19, 2017. (Reuters)

US chipmaker Intel on Friday sparred with EU antitrust regulators over a 376 million euro ($421.4 million) fine levied nearly two years ago for excluding rivals from the market, arguing that it was disproportionate and unfair.

The case dates to 2009 when the European Commission slapped a then-record 1.06 billion euro fine on Intel for blocking rival Advanced Micro Devices.

The tech giant managed to convince the General Court, Europe's second-highest, to scrap the penalty in 2022.

Judges however agreed with one part of the Commission's 2009 decision, prompting the EU competition watchdog to re-impose a 376 million euro fine for payments made by Intel to HP, Acer and Lenovo to halt or delay rival products between November 2002 and December 2006.

Such practices are known as naked restrictions and are frowned on by antitrust regulators. Intel then took its case back to the General Court, asking for the new EU decision and penalty to be annulled.

Intel's lawyer said the EU competition enforcer had not taken into account the limited scope of the violations related to HP, Acer and Lenovo.

"The Commission cannot sustain a finding that there was an overall strategy to foreclose competitors from the entire x86 chips market. These were narrow, tactical moves," Daniel Beard told the panel of five judges.

"The naked restrictions can't be treated as in effect of equal weight to each of the pricing practices which were overturned. Nor do they have the same sort of cumulative effect or strategic weight. They, on their own, don't sustain an overall, market-wide strategy finding," he said.

Beard said the Commission had imposed "a wholly disproportionate and unfair" fine.

The EU watchdog rejected Intel's arguments.

"The Commission correctly applied the finding guidelines, and when in doubt, opted in Intel's favor," its lawyer Pedro Caro de Sousa said.

"The fine is clearly not disproportionate to the seriousness of Intel's conduct, amounting to 1% of its turnover on the last year of the infringement, and about 0.5% of its turnover today," he said.

Both Intel and the Commission called on the court to resolve the issue by setting the size of the fine. A ruling is expected in the coming months.

The case is 09:30 T-1129/23 Intel Corporation v Commission.



Nvidia’s Market Value Tops $4 Trillion

Nvidia logo is seen in this illustration created on January 27, 2025. (Reuters)
Nvidia logo is seen in this illustration created on January 27, 2025. (Reuters)
TT
20

Nvidia’s Market Value Tops $4 Trillion

Nvidia logo is seen in this illustration created on January 27, 2025. (Reuters)
Nvidia logo is seen in this illustration created on January 27, 2025. (Reuters)

Nvidia's stock market value ended the trading session above $4 trillion for the first time on Thursday, solidifying the chipmaker's position as Wall Street's central player in a race to dominate AI technology.

Shares of Nvidia ended up 0.75% at $164.10, giving it a market value of $4.004 trillion and extending its lead over Apple and Microsoft as it benefits from a surge in demand for artificial-intelligence technologies.

Nvidia's stock market value briefly peaked above $4 trillion on Wednesday before closing at about $3.97 trillion. It is worth more than the combined value of all publicly listed companies in the UK.

Nvidia's high-end processors are at the center of a race between Microsoft, Amazon, Alphabet, Meta Platforms and other Wall Street heavyweights to build AI data centers and dominate the emerging technology.

Nvidia is also exposed to conflict between Washington and Beijing over trade, including restrictions on exports to China of its most powerful chips.

"Trade tensions and tariffs are a risk, as is competition. Greater AI adoption could shift part of the demand toward cheaper alternatives," Swissquote Bank senior analyst Ipek Ozkardeskaya wrote in a client note.

Nvidia achieved a $1 trillion market value for the first time in June 2023 and tripled it in about a year, faster than Apple and Microsoft, the only other US firms with market values above $3 trillion.

Microsoft is the second most valuable US company, with a market capitalization of $3.73 trillion. Its shares dipped 0.4% on Thursday.

Apple's stock has tumbled 15% so far in 2025, leaving its market value at $3.17 trillion, reflecting investor worries that the iPhone maker has been slow to introduce AI into its products and services.

Even after its meteoric rally, Nvidia's stock is valued at about 33 times expected earnings, below its five-year average of 41, according to LSEG.