CCI imposes penalty on Intel Corp. for its India Specific Warranty Policy in respect of Boxed Microprocessors
CCI imposes penalty on Intel Corp. for its India Specific Warranty Policy in respect of Boxed Microprocessors
Competion Commission of India has imposed a penalty on Intel Corporation for its India Specific Warranty Policy in respect of Boxed Microprocessors.
The Competition Commission of India (CCI) passed an order on 12.02.2026 under the provisions of Section 27 of the Competition Act, 2002 (Act) imposing a penalty of INR 27.38 crores upon Intel Corporation (Intel) for contravention of provisions of Section 4 of the Act.
The case originated from the Information filed by Matrix Info Systems Private Limited under Section 19(1)(a) of the Act. The Informant alleged that Intel amended its warranty policy for India with effect from 25.04.2016. As per this new policy, Intel would entertain warranty requests for Intel Boxed Micro Processors in India only when the same are purchased from an authorised Indian distributor of Intel (‘India Specific Warranty Policy’). As a result of this India Specific Warranty Policy, Intel did not acknowledge warranty requests on its BMPs that are purchased from its authorised distributors in the rest of the world and instead redirected them to the country of purchase to avail the warranty.
Based on the evidence available, the Commission held Intel to be dominant in the relevant market of Boxed Micro Processors for desktops in India. The Commission found India Specific Warranty Policy discriminatory in comparison with Intel’s warranty policies in China, Australia and rest of the world. The Commission also found the aforesaid policy to have limited the choice of consumers and parallel importers and thereby causing an appreciable adverse effect on Indian consumers. Accordingly, the Commission
found the conduct of Intel in contravention of provisions of Section 4 of the Act.
The Commission, considering the fact that the India Specific Warranty Policy was in place for eight years, imposed penalty @ 8% on the average relevant turnover of Intel. However, considering the mitigating factors including the discontinuation of the aforesaid policy w.e.f. 01.04.2024, the Commission reduced the amount and imposed a penalty of INR 27.38 crores on Intel. The Commission also directed Intel to widely publicise the withdrawal of the impugned India Specific Warranty Policy, and submit a compliance report.
The order was passed in Case No.05 of 2019 and a copy is available on the CCI website at www.cci.gov.in.