Intel Hit with $3 Million Fine in India Over Discriminatory CPU Warranty Policy

Intel has been fined a sum of INR 27.38 crores (approximately $3.02 million) by the Competition Commission of India (CCI) for allegedly abusing its dominant position in the boxed microprocessors (BMP) market. According to an order issued under Section 27, India's antitrust regulator found that Intel India violated Section 4 of the Competition Act of 2002 by implementing unfair warranty policies in the country.

As per a complaint filed by Matrix Info Systems Private Limited, Intel made changes to its warranty policies in India starting April 25, 2016, under which the chip-maker honored warranty support in India only for boxed processors bought from Intel-authorized distributors within the country. Due to this change, Intel denied warranty benefits to customers who purchased their processors from authorized sellers in other countries and were asked to claim the warranty in the country where the product was originally purchased.

Following the evidence and investigation, the CCI concluded that Intel holds a dominant position in the market for boxed desktop processors within India. It also called Intel's India-specific warranty policy 'discriminatory' when compared to its warranty practices in other countries worldwide including China and Australia. The Commission also highlighted that the change in policy limited the choice of consumers and parallel importers, ultimately harming Indian consumers.

Since the India-specific warranty policy was in place for eight years, the Commission imposed the fine based on 8% of Intel's average relevant turnover during that period. However, the penalty amount was reduced considering mitigating factors, including the discontinuation of the aforesaid policy starting April 1, 2024. The CCI has also instructed Intel to publicly announce that it has withdrawn the India-specific warranty policy and to submit a report confirming its compliance.

The CCI's ruling notably draws a parallel to antitrust actions against Intel worldwide. In December 2025, Intel failed to overturn a European Union antitrust ruling related to its competition with AMD. The long-running 16-year case originated from earlier findings that alleged Intel of engaging in anti-competitive practices to disadvantage AMD in the CPU market. While an original fine amounting to €1.06 billion (around $1.25 billion) was annulled in previous court rulings, the European Commission re-imposed a penalty in 2023 tied to certain restrictions on PC makers.

This latest fine in India represents another chapter in Intel's ongoing regulatory challenges across global markets. The company's dominant position in the CPU market has repeatedly drawn scrutiny from antitrust authorities, with India now joining the EU in taking action against practices deemed to harm competition and consumer choice.

For the Indian market specifically, the CCI's decision addresses concerns about market access and pricing. By limiting warranty coverage to processors purchased through authorized Indian distributors, Intel effectively discouraged cross-border purchases that might have offered better pricing or availability. This practice particularly affected parallel importers who bring products into markets where they may be priced higher or less readily available.

The timing of Intel's policy reversal in April 2024, shortly before the CCI's ruling, suggests the company may have been aware of potential regulatory issues. However, the eight-year duration of the policy means the fine reflects substantial accumulated revenue from the practice, even at the reduced 8% rate.

For consumers and system builders in India, the ruling removes a significant barrier to purchasing processors through international channels when advantageous. This could potentially increase price competition and product availability in the Indian market, particularly for higher-end processors that may be priced at a premium locally.

The case also highlights the growing attention that major technology companies are receiving from antitrust regulators in emerging markets. As India's technology sector continues to expand, regulators are increasingly willing to take action against practices that may limit market access or consumer choice, even when dealing with global technology giants.

Intel's response to this ruling and any future policy adjustments will be closely watched by industry observers, particularly given the company's history of regulatory challenges in multiple jurisdictions. The requirement to publicly announce the policy withdrawal and submit compliance reports suggests the CCI intends to maintain oversight of Intel's practices in the Indian market moving forward.