India’s Competition Commission has fined Intel ₹27.38 crore for imposing an India‑specific warranty restriction on boxed microprocessors, finding the practice discriminatory and detrimental to consumers and market competition after a detailed probe under Section 27 of the Competition Act, 2002.
Origin of the complaint
The investigation followed a grievance filed by Matrix Info Systems Private Limited, which alleged that from April 25, 2016 Intel limited warranty support in India to processors purchased from authorised Indian distributors. Processors lawfully bought from authorised distributors abroad were reportedly denied warranty service within India and customers were directed to service centres in the country of purchase.
CCI’s assessment of dominance and conduct
After examining market data and submissions, the CCI concluded Intel held a dominant position in the Indian boxed microprocessor market for desktop computers. The regulator found that imposing a warranty condition that applied only in India amounted to unfair and discriminatory conduct by a dominant firm.
The Commission noted that Intel did not apply identical restrictions in certain other jurisdictions. This differential treatment indicated that Indian consumers faced less favourable terms than buyers in some overseas markets. The CCI held the policy limited consumer choice, discouraged parallel imports, and raised entry barriers for independent resellers, producing an appreciable adverse effect on competition in the relevant market.
Penalty calculation and directions
The fine was initially computed at 8% of Intel’s average relevant turnover over the period the policy was in force — a span of nearly eight years. The final penalty was moderated to ₹27.38 crore after the Commission took account of mitigating factors, including Intel’s decision to withdraw the India‑specific warranty condition effective April 1, 2024, and other submissions made by the company.
Beyond the monetary penalty, the CCI has directed Intel to widely publicise the discontinuation of the discriminatory warranty policy and to submit a compliance report within the timeframe prescribed by the regulator. Intel has been given a stipulated period to deposit the penalty and comply with the Commission’s orders.
Implications for consumers and the technology sector
The order reinforces regulatory expectations that multinationals operating in India must not adopt location‑specific conditions that disadvantage local buyers. For consumers, it clarifies that parallel imports and cross‑border purchases should not be unduly penalised by after‑sales policies.
For the broader tech and electronics sector, the ruling signals that dominant firms’ distribution and warranty practices will be closely examined for anti‑competitive effects. As India sharpens oversight of digital and technology markets, the CCI’s action underlines the regulator’s objective to balance market power with accountability and preserve contestability in supply chains and after‑sales service ecosystems.
