Home » EU’s error with Intel is expensive: 593 million in compensation

EU’s error with Intel is expensive: 593 million in compensation

We end the afternoon with news from Intel, but it won’t be about its future Raptor Lake processors, but about a lawsuit. It appears that European Commission ordered Intel to pay 1,000 million euros in 2009, although this was due to a mistake. Therefore, the EU returned all the money and 38 million euros What interests. However, for Intel was very little, since it claims 593,177,661.75 euros in compensationNot one more, not one less.

It all started in May 2009, when the EU demanded that Intel pay a €1.06 billion fine for market monopoly abuse. Later, in January 2022, the complaint was overturned by the International Criminal Court (TPI). After that, the €1.06 billion were transferred back to Intel in addition to including 38 million euros of interest, with an effective interest rate of 0.29% within 12 years.

Intel wants to increase the interest to 1.25% + an additional 3.5% in compensation for the error

Pat Gelsinger Intel EU Compensation

This interest rate has varied over the years, since at the time of conviction of 2009the interest rate in the European Central Bank (ECB) came from 1.25%but it boiled down to 0% in March 2016. Of the Intel they are not fooled, and for this reason they refuse to accept this discounted zero interest and demand that the 1.25% original. But the thing does not stop there, since he asks for a 3.5% extra or any other appropriate supplement as compensation.

According to Intel, this is the only way to compensate the damage caused by the illegal payment of 1,060 million euros, which the EU was obliged to compensate on the basis of Article 340 of the TFEU. As a result, the Court of Justice of the European Union (CJEU), you must decide whether the 1.25% must be applied during these 12 years and if the total of 4.75% interest claimed by Intel covers the compensation for the announced damages.

As can be seen, this would generate for Intel a total of €593 million due to the error in the EU request, thus being more than 15 times higher to what was originally paid. Surprisingly, this event was not the only one to have occurred in this area, thus having another similar case that affects an important company.

Qualcomm could be the next to receive compensation from the EU

Qualcomm Fine Error EU Compensation

Qualcomm, a leading semiconductor company and creator of the popular Snapdragon processors for smartphones, has faced a similar lawsuit from the EU. Four and a half years ago, the European Commission fined Qualcomm 997 million euros for abuse of a dominant position (monopoly) on chips LTE. In this case, Qualcomm won the litigation, thus placing itself in a position similar to that of Intel.

Therefore, it is likely that Qualcomm is taking advantage of the situation and seeing how its rival Intel is asking for much higher compensation than what has been agreed, it could do the same. And it is that, in situations like this, where the requests do not comply with what is specified or are wrong, the EU must lose. However, we still don’t know anything, as Qualcomm hasn’t commented yet.

Time will tell if Intel wins by taking big financial compensation and if Qualcomm will have the same luck or choose the same path. For now, the only clear thing we have is that the European Union is the loser in these disputes.

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