Intel is demanding 593 million euros in interest on the record fine from the EU Commission

The issue of the record penalty for distortion of competition against Intel is not over yet: in 2009 the EU Commission imposed a fine of 1.06 billion euros on Intel. Intel ultimately paid; but what followed was a year-long legal exchange of blows, at the end of which it was clear that the accusations against Intel were true, but due to – simply put – formal errors, the fine did not have to be paid.

EUG annuls record fine against Intel from 2009

The EU Commission reimbursed the fine at the beginning of the year, but Intel is looking for compensation: The company is demanding further interest of 593 million euros from the EU, and thus effectively from its taxpayers, of course, for the small excursion. The basis for this was only created last year, when the ECJ decided that penalties and fines imposed by the EU Commission and ultimately not steadfast are interest-bearing. And that even applies to interest that has been paid in arrears, which is disputed.

At the beginning of the year, the EU Commission reimbursed 1.2 billion euros after the ECJ ruling, including 38 million euros in interest. However, there is a dispute as to which interest rate should be applied. Intel said its claim was based on an interest rate equivalent to the European Central Bank’s refinancing rate of 1.25% as of May 2009; and this was to be increased to 3.5% from August 2009 to February this year, when the EU paid back the company’s fine, less an interest sum of 38 million euros paid by the Commission to Intel.

In contrast, the subsidies of 5 billion euros for the construction of the 17 billion euro factory near Magdeburg seem almost dainty. The Magdeburg fab is expected to start with Intel’s 20A process and create 3,000 permanent and 7,000 construction-related jobs. If the EU Commission approves the aid and the German authorities approve the funding in good time, construction should start in the first half of 2023.