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Intel Fined ₹27.38 Crore by CCI for Discriminatory India Warranty Policy

The Competition Commission of India has imposed a fine of ₹27.38 crore on Intel Corporation for its India-specific warranty policy on boxed microprocessors. The watchdog found the policy, in place for eight years, discriminatory compared to Intel's policies in other countries like China and Australia. It held that the policy limited consumer choice and adversely affected Indian consumers by not honoring warranties for products bought from authorized global distributors. Intel has been directed to widely publicize the withdrawal of this policy, which was discontinued in April 2024.

Key Points: CCI fines Intel ₹27.38 crore over India-specific warranty policy

  • ₹27.38 crore penalty imposed
  • Policy limited consumer choice and parallel imports
  • Found discriminatory vs. China, Australia
  • Case filed by Matrix Info Systems
2 min read

CCI slaps Rs 27.38 crore fine on Intel over its India specific warranty policy for boxed microprocessors

India's competition watchdog fines Intel for a discriminatory warranty policy on microprocessors that limited consumer choice for eight years.

"Intel did not acknowledge warranty requests on its BMPs that are purchased from its authorised distributors in the rest of the world - CCI statement"

New Delhi, Feb 12

The Competition Commission of India on Thursday imposed a penalty of Rs 27.38 crore on chip-maker Intel Corporation for its India specific warranty policy in respect of boxed microprocessors.

The Commission, considering the fact that the India specific warranty policy was in place for eight years, imposed penalty at 8 per cent on the average relevant turnover of Intel.

However, considering the mitigating factors including the discontinuation of the aforesaid policy with effect from 01.04.2024, the Commission reduced the amount and imposed a penalty of Rs 27.38 crore on Intel.

The Commission has also directed Intel to widely publicise the withdrawal of the impugned India Specific Warranty Policy, and submit a compliance report.

The watchdog passed an order under the provisions of Section 27 of the Competition Act, 2002 (Act) for contravention of provisions of Section 4 of the Act.

CCI said in a statement that the case originated from the information filed by Matrix Info Systems Private Limited under Section 19 (1)(a) of the Act.

"The Informant alleged that Intel amended its warranty policy for India with effect from 25.04.2016. As per this new policy, Intel would entertain warranty requests for Intel Boxed Microprocessors in India only when the same are purchased from an authorised Indian distributor of Intel ('India Specific Warranty Policy')," the statement added.

As a result of this India specific warranty policy, "Intel did not acknowledge warranty requests on its BMPs that are purchased from its authorised distributors in the rest of the world and instead redirected them to the country of purchase to avail the warranty".

The CCI held Intel to be dominant in the relevant market of Boxed Micro Processors for desktops in India.

The Commission found India Specific Warranty Policy discriminatory in comparison with Intel's warranty policies in China, Australia and rest of the world.

It also found the policy to have "limited the choice of consumers and parallel importers and thereby causing an appreciable adverse effect on Indian consumers". Accordingly, the Commission found the conduct of Intel in contravention of provisions of Section 4 of the Act.

- IANS

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Reader Comments

P
Priya S
Rs 27 crore is just a slap on the wrist for a company like Intel. The policy was in place for 8 years! How many consumers suffered? The fine should have been much higher to truly act as a deterrent.
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Vikram M
As a PC builder, this was a huge pain point. If you got a good deal on a CPU from an international seller, you were stuck without warranty. This discriminatory policy killed the grey market and limited our options. Kudos to Matrix Info Systems for filing the case.
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Sarah B
While the action is justified, I hope this doesn't discourage foreign investment. The order seems balanced—they considered that Intel discontinued the policy. The key is consistent, fair enforcement for all companies, Indian or foreign.
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Rohit P
"India Specific" policy usually means "worse for India". Be it software pricing, warranty, or after-sales service. Glad CCI is watching. Now do the same for other sectors like automotive and consumer electronics!
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Michael C
Interesting case. It seems Intel's policy was aimed at protecting its authorized distributor network in India, which is a common practice. However, if it truly limited consumer choice and parallel imports, then the CCI's ruling makes sense from a competition standpoint.
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Ananya R

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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