Intel has landed in hot water in India after the country’s antitrust watchdog ruled that the chipmaker’s warranty rules for boxed desktop processors unfairly disadvantaged Indian buyers. The Competition Commission of India (CCI) has imposed a penalty of INR 27.38 crore (about $30 million) on Intel Corporation, concluding that the company’s India-only warranty approach was discriminatory and harmed consumer choice.
The decision, issued on February 12, 2026 under Section 27 of the Competition Act, 2002, stems from a complaint filed by Matrix Info Systems Private Limited. At the center of the case is Intel’s warranty change that took effect on April 25, 2016. Under this so-called India Specific Warranty Policy, Intel would process warranty claims in India only if the boxed desktop CPU had been purchased through an authorised Indian distributor. Customers who bought the same Intel boxed processor abroad, even from Intel-authorised sellers in other countries, were refused warranty service in India and told to seek support in the country of purchase instead.
According to the CCI, this policy remained in effect for years, covering the period from April 25, 2016 to April 1, 2024. The Commission found Intel to be dominant in the relevant market segment of boxed microprocessors for desktops in India, which brought the company’s conduct under closer scrutiny under Section 4 of the Act, a provision designed to prevent abuse of a dominant market position.
What appears to have weighed heavily in the ruling is the comparison with Intel’s warranty practices elsewhere. The CCI said Intel’s India approach was discriminatory when measured against the company’s warranty policies in other regions, including China and Australia, as well as broader global practices. The Commission also concluded that the policy limited options for consumers and parallel importers, ultimately creating an adverse impact on Indian buyers who often look to overseas markets for pricing, availability, or specific CPU models.
While the CCI noted the policy had been in place for roughly eight years, it also took into account mitigating factors. Intel discontinued the disputed policy effective April 1, 2024, which contributed to a reduced penalty amount. Even so, the final figure remains substantial: INR 27.38 crore, calculated after applying an 8% penalty rate on Intel’s average relevant turnover and then adjusting downward due to the mitigating circumstances.
In addition to the financial penalty, Intel has been directed to widely publicise that the India Specific Warranty Policy has been withdrawn. The company must also submit a compliance report explaining what corrective steps it has taken to address the Commission’s concerns and prevent similar issues going forward.
For consumers, the case highlights a key issue in the hardware market: whether warranties should follow the product globally or be restricted by country of purchase, especially when the same boxed desktop processor is sold through authorised channels worldwide. The CCI’s order makes it clear that, at least in this instance, restricting warranty coverage in India based solely on where the CPU was purchased contributed to an unfair marketplace outcome.
