European antitrust regulators could levy their largest fine ever in a market-dominance case against Intel, in what would be their latest shot at leveling the playing field in the global technology market.
The size of the penalty will be discussed by representatives from 27 EU governments in early May. The decision would follow landmark rulings by the European Commission against Microsoft, which also faces a continuing inquiry over its Internet Explorer browser, and a settlement with International Business Machines, which is also again the subject of a complaint.
To date, Microsoft, the world’s largest software company, has faced the largest financial penalties for abusing its dominance, paying a fine in 2004 of euro 497 million, or $663 million at current exchange rates.
“I’d be surprised if the fine isn’t as high or higher than in the Microsoft case,” said Howard Cartlidge, the head of the EU and competition group at the law firm Olswang in London, referring to the Intel case. “Technology markets are where the European Commission has perceived particular problems due to dominant companies.”
Some people in Brussels speculate that Intel’s fine could reach levels double that of Microsoft, or about euro 1 billion, or $1.3 billion. A fine on that scale still would be dwarfed by Intel’s annual sales, which were $37.6 billion in 2008.
Michael Reynolds, a partner in the international antitrust group in Brussels at the law firm Allen & Overy, said such a large fine would be more likely in a case involving cartel behavior, which is not at issue with Intel.
European regulators have also fined Microsoft euro 279 million and euro 899 million for failing to comply with EU orders in antitrust cases, but these were administrative levies.
The commission’s investigation of Intel began in 2000 after a complaint by its archrival, Advanced Micro Devices, or AMD, which like…