Intel fined India $3 million for customer discrimination

Indian Competition Commission fines Intel for “specific” warranty

ItemDetailsNature of the violationProcessors Intel brought into India via parallel import (unofficial channels) had no warranty. Warranty service was provided only when purchased from an official Indian distributor.Object of complaintDistributor Matrix Info Systems Private Limited, operating through “grey” channels.Date of policy implementationApril 25 2016 – “India Specific Warranty Policy”.What the policy didWarranty in India applied only to purchases from an official distributor. If a chip was bought abroad and imported parallelly, warranty claims were denied; buyers had to contact the country of purchase.Result of investigationThe CCI found that Intel holds a dominant position in the market for boxed processors for desktop PCs in India and deemed the policy discriminatory compared with China, Australia and other countries. This limited consumer choice and that of parallel importers, violating Article 4 of the Competition Act 2002.FineInitially – 8 % of Intel’s average turnover in India (applicable to an eight‑year period). After taking into account mitigating circumstances, including the policy’s repeal on April 1 2024, the fine was reduced to $3 million (≈ 2 717 100 000 Indian rupees).Intel’s obligations1. Publicly announce the cancellation of the disputed policy. 2. Provide a detailed report on compliance measures and describe corrective actions taken.

Thus, the commission imposed a large fine for an exclusionary warranty practice deemed discriminatory but reduced the sanction after the policy was repealed in 2024. Intel must confirm its changes and submit a report on regulatory compliance.