Intel did not refuse to share design files for manufacture of server boards: CCI

The Competition Commission of India (CCI) recently found that Intel Corporation did not abuse its dominant position by refusing to share design files for the manufacture of computer server boards, as alleged by a Bengaluru-based company..The informant in this case was in the business of designing and manufacturing electronic products including servers. It alleged that Intel prevented it from designing and manufacturing its own server boards by refusing to provide it complete reference design files and simulation files, like it provided to other manufacturers like Dell, HP, Lenovo etc.Without the same, the informant stated it could not manufacture server boards compatible with Intel processors. Such conduct of Intel was an abuse of its dominant position in the server market, it was alleged..As per the informant, Intel's refusal to share the designs:(i) Led to denial of market access to the Informant in violation of the provisions of Section 4(2)(c) of the Competition Act, 2002; (ii) Restricted the production of servers and market therefor and also limited technical/scientific development relating to servers in violation of the provisions of Section 4(2)(b) of the Act; and (iii) Amounted to abuse of dominant position in the market for processors for servers to protect the market of servers in violation of the provisions of Section 4(2)(e) of the Act..After perusing the Director General (DG) report, the Commission noted that Intel has strength over other players in the processor for servers segment. The CCI had also in an earlier case concluded that Intel is dominant in the market of microprocessors for servers in India. No change in the market structure since then has been brought to the attention of the Commission, the order noted..However, the Commission noted that the DG did not find any evidence suggesting that Intel denied any access to the information which was required by the informant to enter into the server market."In view of the foregoing, the Commission is of the opinion that there was no deliberate denial of any requisite file (reference design file or simulation file) by the OP (Intel) to the Informant......Resultantly, as the OP is not found to have denied access to the Informant to any requisite reference design files and/or simulation files, no abuse of dominant position can be attributed to the OP.".Advocate Smita Singh and the company's Legal Head Anju Prakash represented the informant.Chandhiok & Mahajan advised Intel. The team was led by Karan Chandhiok (Partner) along with Lagna Panda (Managing Associate) and Vishnu Suresh (Associate). .[Read the order]