CCI Fines Intel ₹27.38 Cr for Discriminatory India-Specific Warranty Policy

The Competition Commission of India (CCI) has imposed a penalty of ₹27.38 crore on Intel Corporation for abusing its dominant position through an India-specific warranty policy for boxed microprocessors, in violation of the Competition Act, 2002.

In an order passed on 12 February 2026 under Section 27 of the Act, the Commission held that Intel's warranty restrictions unfairly discriminated against Indian consumers and limited market choice, amounting to contravention of Section 4 (abuse of dominant position).

Case Origin: Complaint by Matrix Info Systems

The matter arose from 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 in India with effect from 25 April 2016, introducing an "India Specific Warranty Policy" for Intel Boxed Microprocessors (BMPs).

Under this policy:

• Warranty claims in India were accepted only if the product was purchased from an authorised Indian distributor.

• Microprocessors purchased from Intel's authorised distributors abroad were not covered in India.

• Consumers were redirected to the country of purchase to claim warranty support.

CCI Finds Intel Dominant in Desktop Boxed Microprocessor Market

Based on evidence, the Commission determined that Intel held a dominant position in the relevant market:

• Boxed Microprocessors for desktops in India

The Commission found that Intel's India-specific warranty policy was discriminatory when compared to its warranty practices in:

• China

• Australia

• Other global markets

Impact: Restricted Consumer Choice and Parallel Imports

CCI observed that the policy:

• Limited the choices available to Indian consumers

• Restricted parallel importers

• Caused an appreciable adverse effect on Indian buyers

The Commission concluded that Intel's conduct reduced competition and harmed consumer interests by restricting warranty access for legitimately purchased products.

Penalty Imposed After Mitigation

Given that the India-specific policy remained in force for eight years, the Commission initially considered imposing a penalty calculated at:

• 8% of Intel's average relevant turnover

However, the CCI took note of mitigating factors, including Intel's discontinuation of the policy with effect from 1 April 2024.

Accordingly, the Commission imposed a reduced penalty of:

• ₹27.38 crore

Directions to Intel

In addition to the monetary penalty, the Commission directed Intel to:

• Widely publicise the withdrawal of the impugned warranty policy

• Submit a compliance report to the Commission

Case Details

The order was passed in Case No. 05 of 2019, and a copy is available on the CCI website.

The decision is seen as an important reaffirmation of consumer rights and competitive fairness in India's technology and electronics markets.