Intel has been fined by the European Commission to the tune of €1.06 billion ($1.45bn) for abusing its dominant market position and violating EU antitrust rules, following a complaint by rival AMD.

The Commission established that between 2002 and 2007, Intel paid PC makers and retailers to favour its products over those made by AMD. It found that Acer, Dell, HP, Lenovo and NEC had been given rebates if they promised Intel exclusivity. The Metro Group, owner of Europe's biggest consumer electronics retailer Media Markt, had also been given money to only sell computes based on Intel's chips.

Not only did Intel provide rebates to vendors who would not use AMD products, it also paid unnamed vendors to postpone or cancel the launch of products based on AMD chips.

"Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," said Competition Commissioner Neelie Kroes. "Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated."

Kroes jokingly added that Intel should change its slogan from "sponsors of tomorrow" to "the sponsor of the European taxpayer". Somehow we don't think anyone at Intel is in the mood for jokes at this point, as the record fine is more than twice as high as the one levied against Microsoft in 2004, but Microsoft paid fines totalling €1.67 billion ($2.28 bn) in the following years.

The Commission has ordered Intel to cease any further illegal practices immediately. Intel has refused to comment the ruling ahead of a press conference scheduled for later today.

More here.