CCI fines Intel Rs 27 Cr for discriminatory warranty policy in India

The Competition Commission of India (CCI) has imposed a Rs 27.38 crore penalty on Intel Corporation for abusing its dominant position in the market for boxed microprocessors for desktop computers through what it described as a “discriminatory India-specific” warranty policy.

In a statement on Thursday, the regulator said Intel’s policy—which restricted warranty claims in India to products purchased only from authorised Indian distributors—was inconsistent with the company’s warranty practices in other markets, including China and Australia.

According to the watchdog, the policy limited consumer choice and restricted the activities of parallel importers, resulting in an appreciable adverse effect on Indian consumers.

The case relates to a provision introduced in April 2016 under which warranty requests for Intel boxed microprocessors in India would be honoured only if the products were sourced through authorised domestic distributors. As a result, customers who purchased products through authorised distributors overseas were required to seek warranty support in the country of purchase.

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The CCI said the policy remained in force for eight years, warranting a penalty equivalent to 8% of Intel’s average relevant turnover in the affected market. However, the commission reduced the final penalty amount after considering mitigating factors, including the company’s decision to discontinue the policy with effect from April 1, 2024.

Beyond the monetary penalty, the regulator directed Intel to widely publicise the withdrawal of the policy and submit a compliance report.

The investigation was initiated following a complaint filed by Matrix Info Systems Pvt Ltd, which alleged that the warranty restriction unfairly disadvantaged importers and consumers who purchased genuine Intel products through international channels.

The CCI concluded that the India-specific warranty condition distorted competition and consumer access in the domestic market, reinforcing Intel’s dominant position in desktop boxed microprocessors.

With inputs from PTI

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