May 13, 2009 - The European Union fines Intel Corporation a record €1.06 billion for violating competition laws. The EU Antitrust Commission imposes a fine for violating the antitrust rules of the European Community Treaty by abusing a dominant position through illegal practices, excluding competitors from a market for computer chips called x86 central processing units (CPUs) ( 1). Intel Corp. has refused to take blame and asked judges to overturn the antitrust fine, arguing that the EU failed to use mitigating evidence and "capture the dynamics of competition," according to Intel lawyer Nicholas Green. The purpose of this research is to identify and discuss the basis for the concerns and intervention of the regulator, in this case – the Antitrust Commission of the European Union. Furthermore, the nature and effectiveness of the sanctions imposed will be assessed. Facts and legal issues surrounding the Intel Corp. case. After an eight-year investigation, the European Union found Intel Corp. guilty of abusing its dominant position in the CPU market. The EU Antitrust Commission investigated two practices (“A” and “B”): “A” - Discounts and payments, used by Intel to reward major computer manufacturers:1. Dell was given rebates from December 2002 to December 2005 on the condition that the manufacturer purchased exclusively Intel CPUs (3).2. Lenovo received rebates from November 2002 to May 2005 as long as the manufacturer purchased at least 95% of Intel CPUs (3).3. HP was given rebates from October 2002 to November 2005 on the condition that this manufacturer purchased at least 80% of Intel CPUs (3).4. NEC obtained discounts in 2007 on the condition that this manufacturer used exclusively Intel CPUs for its notebooks (3).5. Direct payment... half the paper... overturns the judge's decision, but the record amount of 1.06 billion euros is a serious warning for any company. Conclusion May 13, 2009: The European Union fines Intel Corporation a record sum. Fine of 1.06 billion euros for violation of competition law. The fine check has not yet been signed, as Intel Corporation continues to appeal to higher courts. Intel Corp.'s illegal discounts and practice of direct payments show the level of irresponsibility within a multi-billion dollar company. The EU Court of Justice's decision has fined the company and forced it to stop the violations immediately, but will it be able to turn around and start behaving properly? Even in court trials, Intel's lawyers accuse the EU itself of illegal practices against Intel Corp., arguing that the EU Antitrust Commission is rejecting Intel's documents and denying the right of defense (6). Will Intel Corporation escape the law??