Intel has been fined a record £948 million for abusing its dominant market position.

The European Commission (EC) has fined computer chip company Intel a record €1.06 billion (£948 million) for anti-competitive practices.

In a statement released today (13 May), EU Competition Commissioner Neelie Kroes announced the antitrust decision and the record-breaking fine. Intel’s fine outstrips the €497m Microsoft was forced to pay in 2004 for abusing its dominant position in the market. Intel has been accused of the same violation.

The violation is said to have lasted for more than five years between 2002 and 2007. During this period, Intel reportedly “used illegal anti-competitive practices to exclude essentially its only competitor, and thus reduce consumer choice, in the worldwide market for x86 chips.”

The x86 chips are key hardware components for computers and are required for computers to function. Over the last nine years, its main competitor AMD lodged several complaints over Intel’s market dominance.

The EC found that Intel had given Acer, Dell, HP, Lenovo and NEC hidden loyalty rebates for solely using Intel chips. Intel is also said to have paid manufacturers and retailers to restrict the commercialisation of competitors’ products.

Media Saturn Holdings, parent company of Media Markt, was found to have received direct payments from Intel to only sell computers containing the company’s chips.

Intel released a statement today in response to the decision. Intel President and CEO Paul Otellini said: “Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterised by constant innovation, improved product performance and lower prices.

“There has been absolutely zero harm to consumers. Intel will appeal.”

Intel is based in California and employs 83,900 staff worldwide. It has a market share of $85.4bn.