Lessons From Intel's $1.45 Billion Fine ; There Is a Fine Line Between Using Discounts to Promote Sales and Misusing Such Schemes to Keep Out Competitors.

Summary

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Afew months ago, computer chip giant Intel was slapped with a record fine of $1.45 billion by the European Commission (EC) in an anti-trust investigation. The verdict followed an eight-year enquiry into Intel 's business practice of giving its distributors and computer manufacturers certain rebates and discounts, which was deemed as anti-competition.

The decision has not only dented Intel 's bottom line, but its effect is likely to be felt in India too, where the Competition Commission has recently been empowered to probe allegations of anti- competition practices against the dominant firms. Will the commission adopt a similar tough line on rebates and discounts offered by large companies to their distributors, or are we likely to see a more lenient stand?

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Extract

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Lessons From Intel's $1.45 Billion Fine ; There Is a Fine Line Between Using Discounts to Promote Sales and Misusing Such Schemes to Keep Out Competitors.

To most Indian businesses that are used to being regulated by the antiquated Monopolies and Restrictive Trade Practices (MRTP) Ac...

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