Intel under investigation in India for creating a warranty policy that hinders competition

Intel is being investigated by the CCI of India for creating a guarantee policy that causes unfair competition among retailers.

This post is the one that the Intel hecklers will like a lot. It has just been announced that the Indica Competition Commission has ordered the Director General an investigation after the complaints from the company Matrix Info Systems. They accuse the company of changing warranty policies to allow its authorized resellers an advantage over the competition. Something that caused the price of processors to double.

The crisis at Intel is truly extreme, and it all stems from Brian Krzanich's blatant incompetence. It's becoming increasingly clear that Krzanich was forced out, and they found the perfect excuse in his relationship with a coworker. The 10nm process isn't ready and could be delayed (for the umpteenth time) until next year, compounded by last year's stock problems and the company's constant turmoil.

Intel to be investigated in India for anti-competitive practices

Possibly many people in India users using processors buy it from a reseller. They are logically covered by the typical retail warranty, if applicable. The problem is that they are also coated by the manufacturer itself. The company offers a global guarantee in most of the world. Although it is true that the ITC accuses of a specific policy in India in 2016, with a greater effect than expected.

This policy states that the Indian consumer can only ask Intel for help directly if they purchased a CPU from the Intel Authorized Distributor in India. Basically it is: if you buy the CPU from whom I authorize, you can send it to me directly so that I can change it. Those who buy a CPU outside of India cannot demand this guarantee, you would have to request it from the country of purchase.

Matrix Info System reports to ITC that such authorized distributors create unfair competition. Thus, those who are not authorized by Intel can sell processors in India, but it is more complex to process the guarantee. So anyone who buys a processor and has problems after purchase should take that into account.

ICC statement on the matter

“Intel has stated that there is a large unorganized market in India and parallel importers often under-invoice goods or import old and reclaimed parts disguised as new products. Then when the product stops working, Intel receives a request for replacement of such old and used products. This, according to Intel, not only creates a burden on it, as it only has a limited number of service centers in India, but also negatively affects the interest of consumers. "

In addition Matrix offers a comparison of processor prices from authorized dealers in various countries in the local currency of India. In India they cost INR 26.610, in Japan they cost INR 18.334, in the US they cost INR 11.307 and in Germany they cost INR 11.757.

ITC rejects Intel's argument about its warranty policy

“Such problems of counterfeiting / selling old products disguised as new can persist in various parts of the world and not just in India. Also, simply because Intel may have received some requests in India for the replacement of some old Micro Boxed. processors that may have been sold as new, Intel cannot, in a market as large as India, subject all consumers and / or parallel importers / resellers to suffer the hassle of claiming their warranty service outside of India, even if the product it is eventually purchased from an authorized Intel reseller, but outside of India. In addition, in today's digital world, technology can allow rapid verification by Intel of such counterfeit, old or used products. "

Source: TH