CCI holds Intel’s India Specific Warranty Policy to be discriminatory in nature

This case involved a complaint filed by Matrix Info Systems Pvt. Ltd. against Intel Corporation before the Competition Commission of India (CCI), alleging that Intel’s "India Specific Warranty Policy" violated the Competition Act, 2002 (the Act).

Key highlights of the CCI’s findings and order include:

The Disputed Policy

Starting April 25, 2016, Intel amended its warranty policy to provide local service in India only for Boxed Micro-Processors (BMPs) purchased from its authorized Indian distributors. Customers who purchased genuine Intel BMPs from authorized distributors abroad were forced to return the products to the country of purchase to claim warranty service.

Relevant Market and Dominance

The CCI defined the relevant market as the "market for Boxed Microprocessors for Desktop PCs in India". It found Intel to be dominant in this market due to its consistently high market share (significantly leading its only major competitor, AMD), vast resources, and high entry barriers.

Abuse of Dominant Position

The Commission concluded that Intel abused its position in several ways:

Discriminatory Conditions: The policy was found unfair and discriminatory because Intel did not impose similar restrictions in other major jurisdictions like China or Australia, thereby unfairly targeting Indian consumers.

Restricting Market Access: By denying local warranty service for parallel imports, Intel denied market access to parallel importers and forced consumers toward authorized distributors who often sold the products at higher prices.

Final Ruling and Penalty

The CCI held that Intel's conduct violated Sections 4(2)(a)(i), 4(2)(b)(i), and 4(2)( c ) of the Act. Consequently Intel was ordered to pay a penalty of INR 27.38 crore. The CCI noted that Intel had already withdrawn the policy and returned to a worldwide warranty service model effective April 1, 2024. Intel was directed to widely publicize the withdrawal of the restrictive policy to ensure consumer awareness.

[ Matrix Info Systems Pvt. Ltd. v Intel Corporation, Case No 5 of 2019, Competition Commission of India ]