Competition Commission slaps Rs 27 crore fine on Intel Corp for unfair warranty policy

The Competition Commission of India (CCI) has imposed a fine on Intel Corp, of Rs 27.38 crore, for indulging in anti-competitive actions regarding India-specific warranty policy for its Boxed Micro Processors (BMPs).

In a statement released on Thursday, the Competition Commission said the India-specific warranty policy was discriminatory compared to Intel's warranty policies in Australia, China, and the rest of the world.

The fine has been imposed on the company for abusing its dominant position in the market for BMPs for desktops in India.

The Commission also found the policy to have limited the choice of parallel importers and consumers, thereby causing an appreciable adverse effect on Indian consumers.

Considering the fact that the India-specific warranty policy was in place for eight years, the regulator imposed the penalty translating to 8 per cent of the average relevant turnover of Intel.

"However, considering the mitigating factors including the discontinuation of the aforesaid policy w.e.f. 01.04.2024, the Commission reduced the amount and imposed a penalty of Rs 27.38 crore on Intel," the release said.

Further, CCI has directed Intel to widely publicise the withdrawal of the impugned India-specific warranty policy, and submit a compliance report.