The European Commission fined Intel a record 1.06 billion euros Wednesday for abusing its dominance in the computer chip market, the strongest sign yet that regulators worldwide are serious about opening the technology sector to competition.
The previous record fine for similar abuses in the European Union was 497 million euros, or $677 million at current exchange rates, imposed on Microsoft in March 2004 for blocking competition in markets for server computers and media software.
An officer said that the corporation had skewed competition and denied consumers a choice for chips and pursued a strategy aimed mainly at excluding A.M.D. by paying computer makers and retailers to postpone, cancel or avoid A.M.D. products entirely.
Intel has repeatedly said it did nothing wrong and that its rebates and discounts were legal and a commonly used way of rewarding companies for purchasing very high volumes of its products.
Intel also has suggested that E.U. officials have imperiled its rights of defense during the investigation. Critics of the approach in Europe say it has little concrete effect on technology markets, and has done little to lessen the dominance of entrenched companies like Microsoft.
Since 2004, Microsoft has paid additional penalties in Europe of nearly 1.2 billion euros for failing to comply with the commission’s administrative orders. And in January, the commission issued yet more charges against Microsoft for again leveraging its near-ubiquitous Windows operating system to promote other applications, this time its browser.
The Intel decision also is likely to be closely scrutinized for its effectiveness, in particular for signs that orders to cease rebate practices will make the microchip market more competitive.
Those orders could have a far greater impact on the Intel’s prospects than the fine. The orders also are a strong signal to other technology companies under investigation that additional decisions probably are on the way.
Several IT giants have been on the competition authorities’ radar. Currently, the EU is also investigating licensing practices of mobile phone chip maker Qualcomm and taking a close look at Google.