Intel Fined ₹27.38 Crore by CCI for Anti-Competitive Warranty Policy in India

Novel Delhi – The Competition Commission of India (CCI) on Thursday imposed a fine of ₹27.38 crore (approximately $3.3 million USD) on Intel Corporation for anti-competitive practices related to its India-specific warranty policy on boxed microprocessors, the regulator announced.

The penalty stems from a complaint filed by Matrix Info Systems Private Limited, alleging that Intel’s warranty policy, implemented from April 25, 2016, discriminated against Indian consumers. Under the policy, warranty claims for Intel Boxed Micro Processors (BMPs) purchased outside of India were redirected to the country of purchase, effectively denying warranty service within India for globally sourced products. The CCI determined this policy violated Section 4 of the Competition Act, 2002.

According to the CCI, Intel’s India-specific warranty policy was discriminatory when compared to its policies in countries like China, Australia, and elsewhere globally. The Commission found that the policy limited consumer choice and restricted parallel importers, resulting in an “appreciable adverse effect” on Indian consumers, according to a statement released by the CCI.

The initial penalty was calculated at 8 percent of Intel’s average relevant turnover in India over the eight years the policy was in effect. However, the CCI reduced the fine, citing mitigating factors including Intel’s discontinuation of the policy on April 1, 2024.

In addition to the financial penalty, the CCI has directed Intel to widely publicize the withdrawal of the India-specific warranty policy and to submit a compliance report detailing its implementation. The order was issued under Section 27 of the Competition Act, 2002.

The CCI’s decision underscores its commitment to ensuring fair competition within the Indian market and protecting consumer interests. Intel has not yet publicly commented on the CCI’s order.