The Competition Commission of India (CCI) has levied a penalty of Rs 273.8 million on Intel Corporation for anti-competitive conduct linked to its India-specific warranty policy for boxed microprocessors. In a statement, the CCI said Intel’s warranty framework in India was discriminatory compared to its policies in China, Australia and other international markets.
The regulator held that the policy curtailed consumer choice and restricted parallel importers, leading to an appreciable adverse effect on competition and harm to Indian consumers. The issue relates to a clause under which warranty claims for Intel boxed microprocessors in India were accepted only if the products were purchased from an authorised Indian distributor.
Observing that the India-specific warranty arrangement remained operational for eight years, the commission imposed the fine, equivalent to 8 per cent of Intel’s average relevant turnover.
The CCI has also directed the company to widely announce the withdrawal of the contested policy and file a compliance report.
