Unfair Inside: CCI initiates investigation against Intel

Earlier this August, the Competition Commission of India has issued order to the Director General for initiating investigation and filling a report on the abuse of dominant position by Intel Corporation and Its Indian subsidiary Intel Technology India Pvt. Ltd.

Matrix Info System, a Delhi based IT trading company has lodged complain against the industry giant Intel Corporation under section 19(1)(a) of the Competition Act, 2002 for abusing its dominant position by restricting warranty policy to benefit its authorised dealers in India.

The aggrieved party has contended that since 2016, Intel corporations have amended their warranty policy and have made it entirely country specific. They are in agreement with various dealers inside India and these dealers sell micro processors which have a country specific warranty instead of worldwide warranty.

This amendment restricts trade for independent seller and companies who are importers of similar micro processor from different dealers around the world. The price difference is double with respect to purchase from Indian dealers, who are unfairly benefited by such change. It also restricts the choice from where one can purchase the goods.

Intel defended its action by justifying their action as the new India specific warranty policy which allows products purchased by India markets only to have a warranty claim inside India. Whereas they also stated that product which are not purchased from India are subjected to warranty claims at every other place outside India.

The competition Commission of India after hearing both the side adjudicated that Intel Corporation has a large economic impact on the Indian technology industry and the dependence of customers on the products of the company is vast in nature. Although the change in warranty policy has a significant effect the parallel importers and independent sellers as it is denying market access to them.   

On the basis of this complaint, the CCI has initiated investigation and directed DG to file a report within 150 days.


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