Intel plays human rights card in appeal against record European fine
By John Lister
Intel has, as expected, appealed against a record $1.45 billion fine it received from the European Union over competition violations. But it appears the firm is appealing against the process rather than the facts of the case.
The firm was hit by the fine in May after an investigation by the European Commission, the administrative wing of the European government. Officials ruled that Intel had unlawfully offered bulk order discounts which were conditional on buyers limiting their purchases from rival chipmakers. Though these conditions never appeared explicitly in contracts, the judgment said buyers were made aware of them unofficially.
The full details of the appeal to the Luxembourg-based Court of First Instance are confidential, but Intel has confirmed it is raising human rights issues. While that might seem a strange move for a corporation, it appears the appeal is based on the way the judgment is reached.
The Inquirer quotes an Intel lawyer as saying the fine breaches article six of the European Convention for the Protection of Human Rights, which deals with the right to a fair trial. Intel believes the Commission investigation, which is run by officials rather than judges, unfairly limits its ability to defend itself.
The case highlights an ongoing debate about whether its appropriate for officials to hear such cases in the first place. Given the size of the fines which can and have been imposed, there’s an argument that such cases should be treated as criminal trials and thus held under a court system.
The Wall Street Journal notes that other firms have used the same human rights argument in appeals over large fines, but that no antitrust ruling has yet been overturned on those grounds.
Whatever the eventual outcome, the appeal is certain to drag on an already lengthy case. The New York Times reports that the appeal court takes an average of two years to hear and decide on cases.
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