Intel (INTC.US) wins $1.1B EU antitrust suit, 20-year saga ends

The European Union's highest court, the Court of Justice, ruled in favor of Intel (INTC.US) on Thursday, ending the nearly 20-year battle between the US chipmaker and EU regulators, who accused Intel of trying to stifle rivals.

The court said: "The Court dismisses the appeal by the Commission and thus maintains the judgment of the General Court."

The case against Intel dates back to 2009, when the EU fined the company a record 10.6 billion euros ($11.4 billion) for anticompetitive practices. The European Commission accused Intel of trying to push rivals out of the market by offering rebates to PC makers such as Dell (DELL.US) and HP (HPQ.US) to buy most of their CPUs from Intel.

Regulators typically oppose discounts by dominant companies, fearing they could hurt competition, while companies argue that authorities must prove the discounts are anti-competitive before they can sanction a company.

Earlier this year, a court adviser said regulators had not done enough economic analysis, bolstering Intel's case.

Intel's technology advantage, which had lagged behind rivals for years, is now beginning to erode. The company has suffered a string of setbacks in its European semiconductor ambitions. In September, it revealed it would delay plans to build a factory in Germany, which was due to be subsidized by 10 billion euros.

As of writing, Intel was up 0.32% before the market opened. The stock has fallen 56% this year.