In a landmark ruling for consumer rights and fair competition, the Competition Commission of India (CCI) has imposed a penalty of ₹27.38 crore on global chipmaker Intel Corporation. The order, passed on February 12, 2026, found Intel guilty of abusing its dominant position in the market for “Boxed Microprocessors for Desktops” in India.
The case centered on a controversial warranty policy that the regulator deemed discriminatory toward Indian consumers and harmful to parallel importers.
The Core Violation: The “India-Specific” Warranty
The investigation was triggered by a complaint from Matrix Info Systems Pvt Ltd, a Delhi-based parallel importer. The CCI found that between 2016 and 2024, Intel enforced a restrictive warranty policy unique to the Indian market.
Under the impugned policy:
- Restricted Coverage: Warranty claims in India were only honored if the microprocessor was purchased from an authorized Indian distributor.
- Global Exclusion: If an Indian consumer or reseller purchased a genuine Intel chip from an authorized distributor in the US, UK, or elsewhere, Intel refused to provide warranty support in India.
- Consumer Redirection: Affected customers were told to take or send their products back to the original country of purchase to avail themselves of the warranty.
Why the CCI Ruled Against Intel
The Commission held that Intel held a dominant position in the desktop microprocessor market and used that power to stifle competition from parallel importers.
| Finding | CCI Observation |
| Discriminatory Practice | Intel’s warranty policies in China and Australia were far more liberal than those in India. |
| Market Access Denied | The policy effectively barred parallel importers from competing on a level playing field with authorized distributors. |
| Consumer Harm | It limited choices for Indian buyers and forced them to pay higher prices set by the authorized domestic network. |
| Section 4 Violation | The conduct was found in contravention of Section 4 of the Competition Act, 2002 (Abuse of Dominant Position). |
Calculating the Penalty
The CCI originally considered a much higher penalty, calculating it at 8% of Intel’s average relevant turnover over the eight years the policy was in effect. However, the final amount was reduced to ₹27.38 crore due to several mitigating factors:
- Policy Discontinuation: Intel voluntarily withdrew the India-specific policy and shifted to a worldwide warranty effective April 1, 2024.
- Compliance Efforts: The company’s cooperation during the latter stages of the investigation was noted by the regulator.
Beyond the Fine: Mandatory Publicity
In addition to the monetary fine, the CCI has directed Intel to:
- Publicize the Withdrawal: Widely communicate the removal of the restrictive warranty policy to the Indian public and trade partners.
- Compliance Report: Submit a formal report within a specified timeframe confirming that all discriminatory practices have been scrubbed from its operations.
“The policy was not just about chips; it was about the right of an Indian consumer to access a global product with global support without being held hostage to localized distribution monopolies.” — Industry Legal Expert.
