Intel Fined $3 Million by India’s Antitrust Regulator Over Discriminatory Warranty Practices
India’s competition watchdog has handed Intel a significant penalty following an eight-year investigation into the company’s warranty servicing policies. The Competition Commission of India (CCI) imposed a fine of approximately $3 million on the chipmaker for implementing what it termed a “discriminatory” warranty policy that disadvantaged Indian consumers who purchased boxed processors overseas.
The case, which concluded with a February 12, 2026 order, centered on a policy Intel introduced on April 25, 2016. Under that rule, Intel’s service network in India would only honor warranty claims for boxed processors if the unit had been purchased from Intel-authorized distributors within India. Consumers who had bought genuine Intel processors abroad—whether through personal travel, online retailers, or unauthorized channels—were redirected to the country of purchase for any warranty service.
This effectively meant that Indian customers with legitimate Intel products faced the prospect of shipping their faulty processors overseas at their own expense and waiting extended periods for resolution, even when the products were identical to those sold domestically.
Intel’s Defense and the CCI’s Rejection
During the proceedings, Intel advanced several arguments in its defense. The company maintained that the restriction was necessary to protect its authorized distribution channel and shield consumers from counterfeit, grey market, or salvaged products that could enter the country through unofficial routes. Intel also attempted to draw a distinction between “warranty” and “warranty service,” suggesting that while the warranty itself remained valid, the location of service delivery could reasonably be restricted.
The company further pointed to what it described as low redirection rates—the number of consumers actually affected by the policy—as evidence that the impact was minimal.
The CCI rejected these arguments comprehensively. The commission found that requiring consumers to ship hardware internationally imposed undeniable cost and time burdens, regardless of how many consumers were ultimately affected. It also dismissed the counterfeit rationale as insufficient justification for a policy that applied to all overseas purchases, including genuine products from authorized international distributors.
Market Dominance and Abuse Findings
Central to the CCI’s ruling was its definition of the relevant market: boxed microprocessors for desktop personal computers in India. Within that segment, the commission determined that Intel held a dominant position during the assessed period, despite acknowledging the presence of Advanced Micro Devices as an alternative vendor.
Factors including Intel’s market share, economies of scale, and barriers to entry for potential competitors led the commission to conclude that the company was dominant in this specific market. Having established dominance, the CCI then found that Intel had abused that position by imposing its India-specific warranty policy.
The commission determined that the policy contravened multiple sections of the Competition Act relating to unfair and discriminatory conditions, limiting the market for ancillary services, and leveraging dominance in one market to protect another. The policy was in effect from April 25, 2016 until April 1, 2024, when Intel voluntarily withdrew the India-specific restriction.
A Decade-Long Procedural Journey
The question naturally arises: why did a policy implemented in 2016 only face consequences in 2026? The answer lies in the protracted legal and procedural path such cases often follow.
The matter first came to light in 2019 when a retailer filed a complaint with the CCI. Intel promptly challenged the investigation in the High Court of Karnataka, which granted a stay on proceedings in November 2019. That stay remained in place until August 2022, when the court dismissed Intel’s petition and allowed the investigation to proceed.
Following the lifting of the stay, the CCI’s investigative arm conducted its probe, hearings were held, and evidence was examined. The process culminated in the February 2026 order, marking nearly seven years from the initial complaint to final resolution.
Beyond the financial penalty, the CCI has directed Intel to publicize the change in its warranty policy within India, ensuring that consumers are aware that warranty service is now available domestically regardless of where their genuine boxed processor was purchased.
Intel’s Global Antitrust History
This is far from Intel’s first encounter with competition regulators. The company has faced antitrust scrutiny across multiple jurisdictions over several decades, with cases spanning three continents.
In the European Union, the European Commission fined Intel €1.06 billion in 2009 over conditional rebate practices. That decision was later annulled by the General Court of the European Union, a ruling subsequently upheld by the Court of Justice. However, a separate EU case led the commission to re-impose a smaller fine in 2023 over payments to PC makers designed to delay or block rival products. A December 2025 court ruling further reduced that fine to €237 million.
In the United States, the Federal Trade Commission settled a case with Intel in 2010, entering an order that restricted certain conduct around licensing and retaliation against CPU and GPU competitors. That same year, Intel paid AMD $1.25 billion to resolve a wide range of antitrust and intellectual property disputes globally.
South Korea’s Fair Trade Commission also fined Intel in 2008 over rebate practices aimed at excluding rivals, adding to the company’s long history of regulatory entanglement.
Implications for Consumers
For Indian consumers, the practical effect of the CCI’s order is already in place, given Intel’s April 2024 policy change. Consumers who purchase genuine Intel boxed processors anywhere in the world can now seek warranty service through Intel’s authorized channels in India, eliminating the previous requirement to ship products abroad.
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The case serves as a reminder that multinational corporations must adapt their global policies to local regulatory requirements, and that competition authorities remain vigilant in scrutinizing practices that may disadvantage domestic consumers. While Intel’s arguments about counterfeit protection may have had legitimate foundations, the CCI determined that a blanket restriction on overseas purchases was an overreach that unfairly burdened consumers.
As with all regulatory matters, Intel retains the right to appeal the CCI’s order. Whether the company will challenge the ruling or accept the penalty and move forward remains to be seen.
Source: economictimes